I took it completely apart and put it back together. So I went the extra mile and bought a used working mother board with the disc drive married circuit board.
I looked and found all the files to create an XBOX Drive. The Xbox One is a line of home video game consoles developed by Microsoft.Announced in May 2013, it is the successor to Xbox 360 and the third base console in the Xbox series of video game consoles.It was first released in North America, parts of Europe, Australia, and South America in November 2013 and in Japan, China, and other European countries in September 2014. The Xbox Update Preview carrying version number 2108.210705-2200 went live for those that are part of the Xbox Insider program a couple of days back. I thought it might need a new hard drive so I bought a 500 gb new for $20. But first, you will need to download 3 Files: 1. There are some subtle differences in the method. If you have an Original XBOX One, then jump down to the second video. Click the green check mark once you are ready to move forward to the next step. If you have an XBOX One S or XBOX One X, then follow the first video instructions below.
Error 106 and then of course Error 101 after attempting to reset it or use OSU1 with a USB drive. Follow the directions to download the OSU1 file, and prepare the USB drive for the offline update process. I took the hard drive out of the second player I bought and installed it. I read somewhere that the hard drive can cause this. I tried to boot it up but no video showed up on the screen. One was in great looking shape and still factory sealed. This issue is likely due to a high increase in update traffic on the Microsoft server due to the Xbox One console launch, similair to the launch of the PS4. I bought two broken players at a very low price. I repair certain Old Retro Game Players and decided to try my hand at repairing the XBOX ONE 1540. Chose Offline update and the files are now installed and it is taking me through the initial setup.
So I ejected the thumb drive, inserted into Xbox and turned it on. Before doing any updates or software changes with the Hard Drive connected to the motherboard, make sure that all connections to the board are secure, such as the disc drive, otherwise you will brick the Motherboard, and will require a new one. It is my understanding that the files must be in a folder titled “$SystemUpdate” in order for this to work correctly. I erased the duplicate and ensured that there was only one $SystemUpdate folder with the files in it.
After it failed, I took another look at my thumb drive on my pc to see if I downloaded them correctly and noticed I had a $SystemUpdate folder (with the files) inside of a $SystemUpdate folder. I did it a few times before trying a different avenue. It threw the E106 error and chose the offline update again. I redownloaded the OSU1 files (the exact same files I used for restoring previous Xboxes) and tried to do the offline update on the recent Xbox I acquired. Just in case anyone is still looking for a solution or anyone in the future.