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Maybe the update 33 needs to be rewhitelisted in your antivirus or firewall? Maybe look for any logs referenceing the xbox live dll in the games folder?
I really doubt microsoft went out of their way to block anyone, but who knows APIs like Live change pretty often
When I was going to play some coop today I could not hosts games like I used to be able to do. So my friend hosted instead and sent me an invite to join through steam. I accepted the invite from steam and that did not work either.