I just updated the bedrock server to this version, and updated the xbox one x. When a second players joins a game, that the first player started on the server, the second player starts at 0 enchanting levels and falls from a high place to the original spawn point for an instant death. They also appear to have lost their inventory.
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You should be able to download a copy of the world via this link:
https://1drv.ms/u/s!Ar9Q8NqhOW6Wga17F_KZbvzd2EbRbA?e=IY7HS4
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I updated my bedrock server to 1.16.210.06 but the issue remains.
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Another point I should add. After player 2 joins on the xbox, if they bail out after noticing everything inventory is empty and XP is 0, then player 1 leaves and player 2 starts as player 1, the XP is back to where it should be and the inventory is restored.
But even after that, if they join as player 2 again, all is lost.
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This issue is reported as being fixed in 1.16.220.52. I look forward to its release and testing it.
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I downloaded the latest server 1.16.220.02 today and updated the XBOX. This issue has been resolved for me.
I just wanted to add that this happens when the second player joining joins via split screen on the same xbox. I will test if the same thing happens when other players join from other devices. eg. iPads.