Unable to log in to multiplayer since latest patch 1.2.6

[Elrondolio]

Cannot start or load multiplayer on two different accounts after this update 1.2.6. Says "You must login to an Xbox account and have an active internet connection to play grounded online". But when you go to login by hitting OK, it says "logging in" and then returns the main menu again... not actually doing anything to log you in.  Rinse and repeat, over and over. (It actually looks like its logged in on the upper right as the Xbox account name is there, but that doesn't actually let your start or play multiplayer).

I hate broken updates... please fix.