It seems I don't have the avatar update. But I have dash 13599.
"A system update is required to use this feature." I looked around and I couldn't find anything with details on how to just get the avatar part.
ok just download the 13599 update put that on a usb stick and turn on the console and take the update (being you are allready on 13599 it will ony apply the update to the hd not the nand everything will be fine . )