Hey Herrm, I've been running into this exact same issue since the release of the game. It's now August 11th, post Tremor. Presumably the last DLC until an assumed KP2 is released, if ever.
I've tried contacting NRS and WB numerous times. They don't acknowledge it on Twitter. I've tried the official WB forums and contacting their support team.
They keep telling me:
-try to uninstall the game, delete your gamertag, unplug the system from the back of the console, do a cold reboot, turn system on, install game offline, retrieve gamertag. That didn't work.
-try contacting Microsoft to remove your rights for the DLC and reassign them. (no fucking way I'm doing that).
-try deleting all the DLC, download 1 DLC item at a time followed by a cold reboot. I have just about every DLC there is besides unlock all krypt and easy fatalities. This is very time consuming, but I did it. Guess what, it didn't work.
-try using only one account for a day or more (I do have 3 gamertags), so I sticked to the main one for over a week. That didn't work either.
Tyler Landsdown replied to a tweet from one of the users on WB forums, he said they are working on the issue.
The technical support team wasn't at all working on a fix and demanded to see where this was posted so they can investigate.
Apparently the issue comes from licensing the DLC to your Gamertag I'm guessing. Believe me I've been messing around with this and trying to get to the bottom of it, as to why it's happening. This has to be the most logical reason. I have tested this every way imaginable.
1) if you're XBox One is set for Energy Saver mode, where your console completely shuts off, you most likely have this issue we're all having with the "Reinstallation stopped" error, and the DLC reinstalling itself.
2) if you have the console to "Instant on" you most likely had the issue the first time, but not any time after that. I'm an energy saving person and hate leaving unnecessary appliances on for no reason, so that's a no go for me. Plus it costs money.
3) when you turn on your system (presuming it's online), you can immediately go to manage my games > MKX > and see that immediately there are no DLC available at the start.
4) the DLC will appear on the far right as "READY TO INSTALL"
5) you leave it alone for a little while like 30 seconds - 1min, they magically appear as installed next to the game.
6) when you launch the game, it will cause the issue being discussed, the dragon logo turns slightly brighter and the reinstallation bullshit begins.
7) you will have to wait 5-15min or more depending on your connection speed.
8) I prefer not to wait in game because it causes stuttering and severe slowdown as if fighting the laggiest match of your life.
9) I go to manage games > MKX, and wait for every DLC to finish installing (OVER AND OVER AND OVER AND OVER AGAIN!!)
10) at least 1 or more items will get the dreaded "Installation stopped"
11) I uninstall said items, and can see them in the ready to install section to the right, then install all, usually fixes the problem.
12) NOW, I can finally fucking play MKX without further bullshit.
This happens EVERY DAMN TIME!!!!!!!
Fix your fucking game Warner Bros. and NetherRealm!!!!! we payed a lot of money for your game and the success of it depended on us, this is downright bullshit.