Manually update your Xbox One while Live is down to save time when everything is fixed

Here is the annotated text in the link for reference

Offline System Update Diagnostic Tool

To perform the Offline System Update Diagnostic Tool, you’ll need:

  • A USB flash drive formatted as NTFS with a minimum 2 gigabytes (GB) of space For instruction on how to format a USB thumb drive to NTFS using a Windows PC, please see the bottom of this article.
  • A PC with an Internet connection and a USB port. Helpful Hint: Most flash drives come formatted as FAT32, and you will need to format the USB to be NTFS.

Step 1: On your Xbox One console

You’ll first need to know which OS version you’re currently running in order to download the correct system update.

To find your Xbox One console’s OS version:

  1. Press the Xbox button to return to Home.
  2. Press the Menu button and select Settings (or select Settings on the Home screen).
  3. Select System.
  4. Select Console info.
  5. Your OS version is the third row down. Please document this information so that you can select the correct download in the next step. Note: If you’re in the process of setting up your system for the first time or in the middle of a system update and need to find your OS version, pull both triggers and both bumpers on your controller. The OS version is listed as Build and is the second line down.
  • There are two scenarios where your console may be stuck on the green start-up animation screen and you will be unable to determine which OS version your console is currently on. Please review the two scenarios to determine which OSUDT file you should select.
  1. You have just unboxed your Xbox One console and have powered on for the first time. You see the green start-up animation screen for 10 minutes or longer without transitioning to an image of the Xbox One controller. The OSUDT file you will want to download is OSUDT1. Please continue on to Step 2.

  2. You have just received a system update from Xbox Live. After you download and install the system update, the console is forced to restart. After the console restarts, the green start-up animation screen lasts for 10 minutes or longer without transitioning to either the next screen in your system setup or to the Home screen, depending on whether this is your first update or a later update. The OSUDT file you will want to download is OSUDT2. Please continue on to Step 2.

Step 2: On your computer

  1. Plug your USB flash drive into a USB port on your computer.
  2. Format the USB as NTFS (USB must have at least 2 GB of space).
  3. You’ll need to select the correct OSUDT file based on your current OS Version to be able to install properly. Select the OSUDT file based on your current OS Version that you documented in Step 1 to begin the download.

Step 3: On your Xbox One console

  1. Unplug the network cable if you’re using a wired network connection.
  2. Power off your console, and then unplug the power cord to ensure that the console is completely powered off.
  3. Wait 30 seconds.
  4. Plug the power cord back in.
  5. Plug the flash drive into a USB port on your Xbox One console.
  6. Press and hold the BIND and EJECT buttons on the console, and then press the Xbox button on the console.
  7. Continue holding the BIND and EJECT buttons for 10-15 seconds.
  8. Listen for two “power-up” tones a couple of seconds apart. Note If you don't hear two power-up tones after 10 seconds, it means this failed. Likewise, if you hear any “power-down” chirps, that also means this failed.

  9. You can release the BIND and EJECT buttons after the second power-up tone.

  10. When the console restarts, remove the USB drive.

  11. Once the console restarts, the update is complete and you should be returned to your experience. Note The console restart may take several minutes. If you were using a wired connection please plug your network cable back in to the console. If you have never connected your console to the internet, you will need to connect at least once during your system setup process.

/r/xboxone Thread