If the online update continues to fail, you can manually install it via USB:
: Download the matching update from the Official Xbox Support Site .
“The second 4-digit code in the error code is what dashboard version that the console is trying to update to. ... in my case updating to the latest dashboard via USB failed until the correct older 162xx version was loaded.” Reddit · r/xbox360 · 4 years ago How to fix a xbox360 software update failed
“I literally did just the simple process of accessing the system, hitting the Y button and telling it to clear the cache. ... it said it was performing memory maintenance.” Reddit · r/oblivion · 2 years ago is appearing on your screen?
: Turn off the console. Hold the Sync button (the small button used to link controllers) while turning the power back on. Keep holding Sync until the console fully boots to clear the failed update download from memory. Connectivity and Storage If the online update continues to fail, you
: Go to Settings > System > Storage . Enter the sequence X, LB, RB, X, LB, RB, X . This triggers a prompt to delete all installed system updates and restart the console to try again.
: Place the $SystemUpdate folder on the root of a FAT32-formatted USB drive, plug it into the console, and restart to trigger the update prompt. Community Tips in my case updating to the latest dashboard
: Ensure you have at least 190 MB (or 256 MB in Japan) of free space.