PROFILES won't load with Inventory in multiplayer LOCAL or REALMS

After the recent update, when trying to play multiplayer, the profiles won't load correctly.

I am playing Minecraft with my daughter and son on Xbox Series X, locally.   

What happens is the primary login player on the world or realm will have all of his stuff, but then when another person joins, they show up as Steve and with no items, and at spawn.

However, when that person logs in as the primary, the profile loads with all his items and at his house.    But anyone who tries to join, their profile doesn't load.  this is true for the realm world (that was working fine before the update), and for saved worlds (played a month or more ago).

PLEASE FIX.   Basically it makes multiplayer minecraft unplayable, and REALMS useless.

Tried to log out all the profiles and re-sign in but didn't work.   Reset xbox, didn't work. Checked minecraft on my Xbox One, same issue, still didn't work.   Did not try to uninstall and reinstall...

please advise or FIX