I own Minecraft Java edition, and if I use the old launcher I can still play the game, but when I am in the new launcher just the demo version is available. I think that it might be because the new launcher signs in with an Xbox live account that is attached to my Microsoft account, and I can't sign in with just the Microsoft account. So the launcher is trying to connect with Xbox and sees that I don't have the game pass and doesn't know that I own Minecraft through my Microsoft account and doesn't let me play.
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Thank you for your report!
We're tracking this issue in MCL-16570, so this ticket is being resolved and linked as a duplicate.
That ticket has already been resolved as invalid. Please take a look at the parent ticket (MCL-16570) and see if an explanation is provided there in the description of the ticket or in the comments for why this issue is invalid.
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Duplicates MCL-16570 Please read for a possible solution.