Xbox: Error says I'm out of storage space, quits to menu with weird background

An error message pops up that says I'm out of storage space and it quits to the menu. The menu now has a black and purple background. The world is 1.3 GB, total save file size is 1.6 GB after deleting as much as I can. Theres >660 GB available on the XBOX system. I tried hard reboot on the system to no avail.

Steps to recreate: (sorry can't be more detailed here)

Have a world ~1.3 GB in size
play for a few minutes until error pops up