I’m also experiencing this on XB One, I emailed the support desk. Its pretty annoying alone that the guards harass me every 2 minutes, but not being able to sleep, or complete some quests is very frustrating !!! I hope they fix this soon!!!
Since I‘m waiting for solving this issue by a patch, I‘m getting used to it.
You can sleep/save at the two spots directly in front of the s/w entrance of RATTAY.
So for me it’s no real gamebreaker cause all mechanics are still on the go and I decided to continue the adventure. If I have to sleep/ save I fast travel to the citygate.
But I hope they will fix it soon (Ticket has been sent)
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Run from a guard trying to search you until you get a bounty and then surrender and pay the fine,fixed it up for me but I also was fined by the guard that caused it to happen to me in the first place
Yeah I tried that immediately after I noticed the bug,
unfortunately it didn’t work. I’m just getting used to sleeping outside of town to save. I’m still hoping they patch this, but I’ve adapted.
when i started game I only had L1 showing so had always to run from the guards because i didnt know how to surrender later i watched some videos online and find out that i have to press X. Maybe bug …
I have the bug but my game is not unplayable it’s been fine for me the only issue so far is it’s annoyance
They do save for me 
this is still a huge problem on xbox. i cant get rid of it, no workaround seems to do it for me.
will this be addressed in the next xbox patch? i dont see any mention of it in the known bugs forum.
xbox patch dropped, cant test it till tonight though. anyone know if it fixed the surrender bug?
Will test it later but I have this isssue for a week now, and it’s no real problem. Sleep/Save in front of Rattay Gate or in Bathhouse, so no thing.
Just checked with Patch 1.2 (9,95GB) on XboxOneX.
Permanent Surrender is gone!
Edit: And I might get the feeling the whole game is a little bit more stable, in better shape (less pop-ins) and with better performance. This patch should have been released to release or on retail disc (gold).
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awesome, thanks for checking. it wasnt the biggest bug, but it sure was annoying.
I’m also having a problem where the guards are attacking me and it gives me the surrender choice. But after pressing it or holding it down they still attack me. I can’t do the quests in the area because of it. I’m on Xbox one