Hi Johnny,
To get rid of the issue with Xbox Identity Provider in Canary, I ended up doing the following on several different machines:
While I was still at 26058.1000, I switched to Dev Channel and let W.U. update to 26058.1400, after that the MS Store also updated the Xbox Identity Provider to latest version 12.110.15002.0.
Once all that was done, I switched back to Canary and updated with ISO to 26063.1.
No more issues with Xbox Identity Provider.
I think that MS needs to do that update to version 12.110.15002.0 directly also in Canary to eliminate the issue completely.
The Canary machines that still have version 12.95.3001.0 get the error back when updating with ISO. 😉