Suggestion:
It's actually not that weird. You'll probably get some advice to try to fix it yourself but your chances of success are next to none at best. If it's still under warranty, bit the bullet and send it in to Microsoft. If it's not, check on what it would cost to replace the board. The best option, though, might be to find a good used Arcade version at GameStop or other outlet and keep your hard drive and then use it on the new one. You should be able to do this for under $100.
Your problem is most likely a heat issue and/or actual board damage. There's no simple fix for it.

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