How Do You Update Minecraft on Xbox 360 Edition
Hey there Man thanks for taking the time to bring this issue to us.
We apologize for the inconvenience this has caused but rest assured we here to help. We suggest rolling back the update to the console itself (Solution 7) to narrow down the problem. Give it a shot and keep us posted on how it goes.
Thanks again for being the best part of our Xbox team!
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So Minecraft on your Xbox 360 has not got the latest update. If the game needs an update, the Xbox 360 will check for one before the game starts and will ask you to update it or automatically do it (depending on your setting) if there is one available.
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The Xbox 360 and the Xbox One (the one labeled Xbox One Edition) Versions of Minecraft are not actually support with updates at all since around the update they added llamas a few years ago. If you've been looking for/hearing about this new update of Minecraft its only available on Bedrock editions (Windows 10 variants) and the Java versions of Minecraft, so "new" Minecraft only. Don't worry though, when you upgrade to an Xbox One if you owned Minecraft at any point you get the newest version for free. (I think.)
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Thank you this did solve my problem
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The legacy editions of the game, 360 and Xbox one edition will not be supported with newer updates in the future as the player base on that particular version is small compared to the bedrock edition and Java edition.
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The promotion for the free upgrade to bedrock has expired on 31 January 2018.
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How Do You Update Minecraft on Xbox 360 Edition
Source: https://answers.microsoft.com/en-us/xbox/forum/all/minecraft-xbox-360-update/a2f7ca5f-4e55-4ab1-b4da-a1eacf5ddbd7