Can't play local co-op without Xbox Live

[Released: 2013] Moving away from its predecessor's PowerPC-based architecture, the Xbox One marks a shift back to the x86 architecture used in the original Xbox; it features an AMD Accelerated Processing Unit (APU) built around the x86-64 instruction set.

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Can't play local co-op without Xbox Live

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My sister & her bf wanted to play COD BO2 on her Xbox One. She made an account for her bf & all but are having issues with the Xbox 360 signing in side of things.
When he presses 'A' to add his controller it asks for a Xbox 360 profile to be selected, he has tried his own account & the guest account but every time it fails. A failed log-in comes up & says "this requires an Xbox live membership to play", even though it's in local play.
I've tried to see if putting the Xbox One into offline mode would work but still required a membership, yet my sister can play without any issue since she has a membership.
I never recalled this being an issue in the past whenever I played locally with friends & they picked the guest account. Is this a new thing Xbox started to do & is there a way for them to play without him having a membership?

submitted by /u/RIFTxBLADE
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