I’ve had this happen very occasionally and it normally fixes itself within a few seconds. To note, i’m playing solo, and I just had it happen while farming chests in The Forest. I’d run past all the Stumpy enemies and while it was “updating session” I got downed and respawned. This is only a minor irritation but the game literally failed to move on from the “Connection Failed” screen, to the point I had to actually close the game via the Xbox Guide.
I know this is very late in the life of even THC, but can someone explain why this happens?