Update at 2255 UTC - XBOX Support shared the following “All Clear” message. Normal service should now be restored.
Good news — the earlier Xbox issue should now be mitigated. You should once again be able to launch games, sign in, and complete purchases. Thanks for sticking with us through a long one. Let us know if anything still looks off: http://support.xbox.com
Update at 1045 UTC - XBOX have provided the following statement:
We are aware that some users are encountering errors when attempting to sign in, see your game library, or launch games. Our engineers are actively working to mitigate the issue. For updates, please follow along on https://msft.it/6015vCwkS
We are aware of player reports regarding server connectivity issues when launching Microsoft Flight Simulator 2024 & Microsoft Flight Simulator (2020).
Thank you for your patience whilst this is being actively investigated.