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XM band for GM radios currently uses a completely separate module from the radio head in dash. This module has an audio output feed into the stereo aux input on radio. These modules also communicate to each other over serial data.

Every time the vehicle starts up these 2 modules start communicating and the radio "relearns" that an XM module is in the vehicle (and thus when you press the band button it displays XM1, XM2 instead of just going between FM1, FM2 and AM.

So if this continues to happen my suggestion would be to consider that your XM receiver has somehow become "logic locked" - a term that I see service technicians use which I like :)

What you could try to do is pull the fuse which feeds the XM receiver and then reinsert it after 30 seconds or so and see if your XM receiver recovers. If it doesn't then you likely will need to go to dealer to have them troubleshoot it.

Your owner manual will show which fuse is for the XM. It is fuse block located in trunk on left side of vehicle (I believe it is fuse #16 as shown on label). Leave ignition off so that radio is off. Pull out the 7.5 Amp fuse (only one in there that size) and reinsert after 30 seconds. Then turn on vehicle and see if XM band is functional again.
 
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