I am having the exact same issue and i've checked all of my proofs. The alternate email, the phone number and everything really is 100% accurate and correct and yet every time I try to sign into xbox live after typing in the correct password to my xbox live account, I still get that error message thus preventing me from signing into xbox live. I don't think this is a security issue anymore with our accounts, I think it's a bug that you overlooked when implementing this new proofs system to xbox live. I can sign into my xbox live account just fine on xbox.com but when it comes to my console, it won't let me even though the password I put in is 100% correct. If someone has found a resolution to this issue i'd appreciate an answer, thank you.