My XB would do it too sometimes(MSFS only). At one point I had to re-install the offline files so I could toggle online/offline. Usually when it would hang on XBOX, I would log in and out of everything. If it were really stubborn I’d log in/out of every MS account on my computers too.
I’ll tell you what I never do and that’s reinstall the game. I don’t think that ever fixes much of anything and is a crazy waste of time. Unless you went into the files on PC and corrupted something, I have no idea how that would fix anything, unless it accidentally fixed what the real issue was in the process.
There’s definitely some gaming services/XB app bug in the system somewhere.