Recently I have faced an issue where Xbox Live fails to connect or more specific, fails to 'authorise' when decryption is enabled.
Looking into this further it seems that Xbox Live connects to similar services that Windows uses for Microsoft updates. It is known that in order to get microsoft updates to work when enabling decrypted, you have to exempt certain URLs as the server just rejects the connection.
Apple is also similar, described in this article: https://live.paloaltonetworks.com/t5/Management-Articles/How-to-Bypass-Decryption-to-Access-the-iTun...
The same applies with Xbox Live.
The no decrypt rule will look like this:
'Xbox' URL category is custom and includes the following URLs:
Hope this helps anyone out!
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