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On Xbox consoles, being asked for the Microsoft account password instead of the Xbox PIN is usually related to how the account sign-in and security are configured, especially if the same Microsoft account is used on multiple devices.
To reduce password prompts in the future:
- Make sure the correct console is set as Home Xbox
- On each Xbox, sign in with the Microsoft account.
- Go to Settings → General → Personalization → My home Xbox.
- Set the primary console (the one used most and especially for offline play) as the Home Xbox.
- Avoid frequently changing which console is set as Home Xbox, as this can cause more frequent sign-in/security checks.
- Keep the account signed in and avoid repeated full sign-outs
- On each console, after signing in with the Microsoft account and PIN, do not remove the account or fully sign out from all devices unless necessary.
- If the account is removed from a console or security settings are changed online, the console may require the full Microsoft password again.
- Check Microsoft account security settings
- If two-step verification or passwordless sign-in is enabled, some devices or sign-in scenarios may periodically require the full Microsoft password instead of a PIN, especially after security changes.
- For older devices (like Xbox 360) or certain apps, an app password may be required when two-step verification is on. In that case, generate an app password and use it on that device instead of the normal password: see How to get and use app passwords and How to go passwordless with your Microsoft account in the references.
- Avoid frequent security changes
- Repeatedly changing password, enabling/disabling two-step verification, or modifying sign-in methods can cause consoles to re-prompt for the full password to re-verify the account.
If the issue continues even when the Home Xbox is stable and security settings are not changing, sign out and re-add the account once on each console, then set the preferred sign-in and PIN again so the consoles store the updated credentials.
References: