You've connected the Kinect sensor to your Xbox One console using the Kinect cable, and the sensor's power LED is on, but the Home screen says the sensor isn't connected. When this happens, it means that, even though your sensor has power, it's not being recognized by your console.

Note If you see the "Kinect is unplugged" message and your sensor's power LED is not on, you're having an issue with your sensor not powering on. For help with troubleshooting that issue, see Your Xbox One Kinect Sensor won't turn on.

To resolve this problem, try the following solutions. If a solution doesn't work, go to the next solution.

Solution 1: Confirm that the Kinect sensor is firmly connected via cable to the Xbox One console

1. At the back of the console, unplug the cable from the Kinect sensor port.

2. Plug the cable back into the Kinect sensor port.

3. Press the Menu button on your controller.
4. Select Settings, and then select Kinect.
5. Wait up to two minutes for the sensor to be recognized.

Solution 2: Confirm that the Kinect sensor is turned on in the Kinect settings menu

1. Press the Menu button on your wireless controller.
2. Verify that Kinect on is selected.

Solution 3: Reset the Kinect sensor's connection to the Xbox One console

1. Power off the console by pressing the Xbox button on the front of the console for 10 seconds, until it shuts down completely.
2. Unplug the console’s power.
3. Unplug the Kinect sensor from the Xbox One console.
4. Plug the console power back in.
5. Press the Xbox button on your console to power up the Xbox One.
6. Plug the Kinect sensor into the back of the console and wait up to two minutes for it to be recognized.

Note If your sensor needs an update, the screen will indicate that an update is in progress.

Source: support.xbox.com