As mentioned by Warbucks in the comments. Users affected by this issue will need to uninstall the now defunct Xbox Console Companion app and reboot their computer.
An error occurred while saving the commentRuss commented
Can confirm I had the exact same issue, and that uninstalling Xbox Console Companion and rebooting fixed it, progress was saved after doing that. Weirdly, on a second PC, had Xbox Console Companion installed (totally different gamepass subscription) and didn't have the problem.