Trying to play minecraft with my wife on a world we've put moths of work into. She plays as the 2nd player on split screen and when she signs in all of her items and levels and even her skin is deleted now after this update. Netherite tools, elytra, tons of stuff for building farms is gone. How are we supposed to get this back? And I have a copy of the world but guess what it's the same story. Her data is all deleted now even on the copy.
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Same problem, I have with daughter, coming into the world as player2, on xbox one, splitscreen, all inventory lost for her. With a lot of heart ache as has lost netherite armour and tools due to this. Observed this a few weeks ago, and did a hard reset, and manage to get inventory back (via world backups). However, since the latest update, even with hard resets, and testing old world backups, when player2 now joins, all inventory is lost.
Note we have tested a brand new survival world since the update and no inventory loss occurs. Issue is the historic games, with all the gaming hours invested to it, this bug is a massive demotivator.

Hate to hear it but maybe since it seems to be pretty common it can be fixed quickly. My wife is a real fan of minecraft so she wasn't too aggravated since we have a huge stash of diamonds. Have an xp farm, a villager trading hall and in a few minutes had most of her gear back although not the netherite version of course. We've decided to dedicate a spot in the main base for her to deposit all her inventory from now on so if this happens again all she'll lose is the levels which we can quickly recover with the xp farm. Just trying to make the best of a bad situation until this problem is hopefully fixed.

Same exact scenario has happened to me. I came here to search for a solution so I'm somewhat comforted by the fact that there are others. I thought it might be an issue with my account not syncing my play data to his world but that must not be the case. I can load my own first player games with no issue, just not second player. Hopefully we have a solution soon.

My wife and I are having the same exact issues. Her log in from mobile device had inventory but not on Xbox.
We did the same as previous comment and transferred her inventory, but I accidentally logged her off without taking all her equipment off and we lost everything. .....
We have enjoyed MC together for a long time, now she is thinking of quitting. I really hope this issue can be resolved.

Thank you for your report!
We're tracking this issue in MCPE-55815, so this ticket is being resolved and linked as a duplicate.
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This now affecting 1.19.50
My friend plays 2nd player. He lost all his Leveling and inventory, was transported back to spawn point, when we went to play today
Having the exact same issue. Sons try to join a world we have been playing in on the Xbox and the have no inventory or levels.
BUT one of my sons logged in via the Xbox app on his Android phone and his inventory and levels were there. Very odd.