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Basically, your PC stores your login credentials in a completely different folder from your game, and the game borrows them from that folder to login. When you enter your login info into that little pop-up window, sometimes it won't update the credentials and it keeps loading the old ones. Other times, the credentials will randomly just stop working and need to be re-entered, but because of one reason or another your PC just isn't using the right credentials. The game isn't smart enough to know which credentials are right vs wrong, and verifying your game files or uninstalling and reinstalling won't do anything to fix your credentials.
I highly recommend first logging into the XBox website to confirm your account information is correct, as well as your account not being on lockdown because someone tried to hack it or you entered the wrong info too many times. Some people have had to provide a phone number to enable 2FA. Once you've confirmed that there's no issue with your login info, then you can remove the bad stored credentials that your PC keeps trying to use.
To remove the bad credentials, go into your PC Settings, go to your Credentials Manager, select Windows Credentials, and delete the most recent XBL|DeviceKeys. Some people have had to delete all credentials that start with XBL to get this to work. The next time you open up the game, it will force a first-time login page, which will create a new XBL|DeviceKey that will be saved in your PC's Settings. You should only have to do this once, because once you're properly logged in for the first time the game will just automatically load in the credentials saved on your PC. Of course, this assumes that your credentials somehow don't get messed up again...
HOLY SH*** after almost two years of posting this problem you have found the problem. I deleted everything in Web Credentials and Window credentials and the game actually let me in! Genius. thank you so much I can finally play this game. Now on to post other problems ! xD