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. I thought it might need a new hard drive so I bought a 500 gb new for $20. Error 106 and then of course Error 101 after attempting to reset it or use OSU1 with a USB drive. I took the hard drive out of the second player I bought and installed it. I read somewhere that the hard drive can cause this. I tried to boot it up but no video showed up on the screen. One was in great looking shape and still factory sealed. I bought two broken players at a very low price. I repair certain Old Retro Game Players and decided to try my hand at repairing the XBOX ONE 1540. Chose Offline update and the files are now installed and it is taking me through the initial setup. So I ejected the thumb drive, inserted into Xbox and turned it on. It is my understanding that the files must be in a folder titled “$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.
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