During gameplay, the "Only Allow Trusted Skins" may switch itself during gameplay, causing weird skin displaying glitches (such as all players suddenly displaying as your skin, or a default skin). However, since you are able to switch the option during gameplay, this can be easily worked around.
Note: This can occur both ways, the option can turn itself off after leaving it on, and the option can turn on after leaving it off
The second screenshot below was taken after leaving the game idle for about an hour after the first was.
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You just have to run the game for a while. You can keep checking the settings every 20 minutes (at the least), making note of the toggle's current setting. Or, if you are in multiplayer, and don't check the settings and suddenly you are experiencing skins showing as default on other players' screens (MCPE-78206) or skins displaying as yours and/or other's seeing you as themselves (pretty close to but not the same as MCPE-48207), that is an indication the toggle has switched itself. It's much easier to tell when the toggle has swapped
My friend are trying to entering this world that's hosted by me with "Only allow trusted skins" are OFF, but after entering this multiplayer world, this option of trusted skins are turned ON and cellular data are turned OFF by itself. I will helping this friend to fixing the problem, but this option are greyed out.
From what I can tell, the "Only Allow Trusted Skins" option can be toggled mid-game, but the other one you mention of (which is a separate report) cannot be switched mid-game
But after rejoin this world, this issues are resolved and I don't know in the future issues for in game. (I forget this friends are trying to playing multiplayer world or single player world)
Can confirm.