Highlight any connected storage device, then press the button on your controller. Select Clear System Cache and confirm your choice. Restart the console completely. For Xbox Series X|S & Xbox One (Backward Compatibility) Open the main system Settings menu on your modern console. Navigate to System and select Storage Devices . Select the option to Clear local Xbox 360 storage .

If the error persists on a modern console, the local "emulated" storage might be corrupted. Go to > System > Storage . Select Clear local Xbox 360 storage .