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It seems that it is mostly new or recently refurbished Xbox 360s are the ones affected. Microsoft quickly acknowledged the problem, saying that an installation code was the cause of the majority of the reported issues.
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Edit: An updated version of the Fall Update is now available on Xbox Live which has elminated issues relating to new or refurbished consoles failing after applying the Fall Update. Users who have already applied the Fall Update and are
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An updated version of the Fall Update is now available on Xbox Live which has elminated issues relating to new or refurbished consoles failing after applying Monday’s Fall Update. As some users reported getting “error code E71″

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