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I got this error around 7:30 PM MT, it affected the console version and play anywhere. Xbox status never acknowledged there were any issues but downdetector.com had reports around 6:30 PM to 9 PM and again from 10:30 PM to 12:30 AM.
Seem to have cleared up now. This isn't the first time I've had this issue on the play anywhere version though.
I was able to get through this screen by resetting my Xbox cache (series S).
Powered the console down completely, unplugged, then discharged any remaining activity by holding down the power button for 10 seconds. I have NO idea why this works, but it does!