https://www.gamespot.com/articles/update-xbox-live-back-but-experiencing-issues-on-x/1100-6455903/

UPDATE: According to an update from Xbox Support on Twitter, some functionality has returned to Xbox Live. "Our teams are marking the licensing issues as now resolved, thank you all for your patience! You should be all set to access your digital games once more!" read an update from Microrsoft at 4:38pm PT.

However, according to the Xbox status page, there is sit "Purchase and Content Usage;" "TV, Music and Video;" and "Social and Gaming" are all still marked as limited. Xbox Live Core Services have been upgraded to "Normal."