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Hello,
This error occurs when the game is unable to complete the sign-in process to your Microsoft account. The Minecraft official support page troubleshooting suggests ensuring that Xbox services are running and that your network can connect to Xbox Live, and it seems they are currently investigating this issue.
This problem appears to be occurring worldwide, mainly affecting primary Microsoft accounts. Strangely, there are reports that newly created Microsoft accounts can sign in without any problems.
Here is a workaround that some users have shared on social media:
- Do not launch Minecraft open the Xbox app instead.
- Sign out of the Xbox app.
- Disconnect your network (unplug the LAN cable or disconnect Wi-Fi).
- Launch Minecraft (while offline).
- Reconnect your network (leave the game on the title screen until it connects).
- Once connected, sign in from the Minecraft title screen.
- If prompted to sign in from either Minecraft or Xbox, go ahead and sign in.
That’s it! However, it seems you’ll need to repeat these steps each time you close the game.
Hopefully, this issue will be resolved soon. In the meantime, please try the workaround above.
Thank you.