Managed to fix this by doing the below. I found this out about 3 years ago when i had a error in my online profile in MS2020. You will probably lose any save data though. Note the game folder is now called Microsoft.Limitless_…
Once you have done the below steps, you need to delete the contents of C:\Users\YOURUSERNAME\AppData\Local\Packages\Microsoft.Limitless_8wekyb3d8bbwe\LocalState\StreamedPackages
Advise dont skip the avatar creation step otherwise the issue will probably happen again.