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search and open Credential Manager.
Then head to the Windows Credentials tab and in the General Credentials section, select XBL/DeviceKey.
Now click on Remove and then confirm to remove the entry.
Then relaunch the MCC gaming client and log in using your credentials to check if the MCC contacting server issue is resolved.
If this doesn't work try any of these solutions on this site https://appuals.com/how-to-fix-contacting-server-error-on-halo-master-chief-collection/
I am the friend in question, this worked for me after also verifying, reinstalling and singing in and out multiple times
https://support.halowaypoint.com/hc/en-us/articles/4411142084628-Cannot-Sign-in-to-Halo-Infinite-on-Steam-Stuck-in-a-Sign-in-Loop
This issue occurs in both the MCC and Infinite, as well as other games that use XBL services. Basically, your operating system stores your login credentials, and sometimes it fails to use the right credentials when trying to login. Even if you put in all of your info correctly, the program reverts to the stored bad credentials, which is frustrating. The methods in the link above help clear that data out so that the next time you try to sign in, your info won't be confused with the old data. It's worth noting that your Credentials are stored separately from you game's files, so verifying your game files will not fix the issue, and neither will reinstalling the game.
For Linux via Proton go to steamapps/compatdata/1240440/pfx/ and move or delete the .reg files (they store registry entries and the credential data). This will have the same effect as clearing out your old credentials via the method linked above. For Steam Deck, you will find these files somewhere on your Steam Deck in a similarly named folder.