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Good Morning. I am not a very technical person so please bear with me. I have an android box that came loaded with Kodi. I am currently in an argument with them regarding an issue I am having. They are going to fix it for me, but I am just wondering if anyone knows how my issue may have happened.

I went to watch Kodi yesterday and entered the program using my remote exactly as I had been told to do. When I entered Kodi there was a message, I'm sorry I didn't get all the exact wording, but it basically said there had been an update and that I needed to restart Kodi for the update to take affect. So, I restarted Kodi, the same as I do when my computer tells me that. Apparently I shouldn't have done that.

Anyway, now I have to do a factory reset on my box, which is fine, I will do that. The main problem is that they are telling me that I did something and MUST have gone in somewhere called a store and chose to do an update on Kodi. As I've told them over and over, I certainly did not do that because I wouldn't have a clue where to go and what to do. I suggested maybe the box had been hacked.

They very vehemently denied that could possibly happen since the box is encrypted. Anyway, what I would like to know is has this happened to anyone else and if not do you have an idea what may have caused it to happen. Again, I did absolutely nothing but enter the program. I didn't download anything, I choose to update anything from any store. Thank you for any help you may be able to give me.
It all depends on how Kodi has been loaded by the vendor, if they have installed the version from the Google Play store and a Play Store update has the potential to break what they have done, then they should have disabled Play Store updates.

It also sounds like you may have bought what is sometimes known as a fully loaded Kodi box, so it's therefore highly likely if you are using it to access online streams that these are illegal streams of pirated content.
Thread moved to the Android section.

On the topic @jjd-uk mentioned, this blog might be worth a read in case it's applicable. If it is a "fully loaded" box then from what you describe your best bet is to return it for a refund.