I did something which I had tried yesterday, but yet received those error messages in the first image set, at the start of this thread.
I again removed the Internet cable (same as yesterday) from my Xbox (went offline) and opened MSFS.
Today, when I then went back to the data option, now I was able to toggle the offline mode (but bing maps was still greyed out), however, the moment I toggled the online to offline mode, bing option became available to toggle. I set that off as well.
Then I went ahead and took a test flight.
Everything is fine and dandy.
I hope it stays this way forever 
Else, I’ll be back 
Trust this thread helps someone who might find themselves in a similar situation on the Xbox.