My name has been set to guardian#### and I have logged into destiny 2 on xbox first after the update and its still the guardian name and not my gamertag.
I should clarify my gamertag DOES NOT breach any of the code of conduct segments.
I can not change the name either.
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Unfortunately they still haven't introduced the option to change your Bungie Name. Until that option is introduced, you'll be stuck as Guardian. There's a possibility that your gamertag has a section that is an offensive term in a different language that struck the filter, though.