Yesterday I re installed Windows 11 from scratch without restoring any backups. Flight Simulator now works as it should and my profile returned after syncing.
Must have been an issue with Windows 11, pretty frustrating that I had to reinstall Windows to fix it !
Another possible reason for anyone who use the mentioned method above but still has the issue. I had gone over all methods you guys state above but none of those works for me. The method below prevent you from reinstall windows 11.
Uninstall Gaming Services application from windows setting. You do not have to reinstall it as it installs automatically.