This is a known issue in the world of Xbox live and a simple "wipe" of your account should do the trick. After you've redownloaded your Account, the problem should be solved.
Step 1: Run the Live Connection Test
Usually the test will go through as normal but just to be sure, check
the results in case there are any error codes or messages. In some
cases, running the test alone can sort things!
Step 2: Clear the Console Cache
Don’t worry if you’ve never done this before; clearing the cache on
the console won’t remove a Gamertag, DLC, game saves, or any dashboard
updates. It will clear out some temporary files and game “title
updates.” Those are the updates that get downloaded when a game starts
up.
To clear the cache:
Go to the Storage Menu
Press ‘Y’ on a storage device (not the cloud)
Select “Clear System Cache”
Confirm with “Yes”
That’s it! It only takes a second or two for the cache to clear. If
your Helpee thinks nothing happened, they may have just blinked and
missed it!
Step 3: Re-download Profile
Next, the helpee’s profile needs to be downloaded to the console
again. To avoid even the possibility of losing something important,
only recommend they download the profile. Do not recommend deleting
the profile! Downloading a profile is done by going to the Sign In or
Out Screen and going all the way to the right. Once the MSA and
password (or two-factor code) is entered, the download will start.
Step 4: Restart the Console
This is another safety step. Err on the side of caution and give the
console a little downtime.
That should stabilize your helpee’s connection to Live! If any error
codes or other hurdles show up during these steps, switch gears and
work to resolve those before going on. Prepare to help with getting
passwords remembered and security proofs set!
Best Answer
My account is password protected as well, but I have the require password option turned off for when I boot up the Xbox One. Check your settings and hopefully that will correct the issue.