I don't see my friend's local server.

Both of you have to be on the same version, so e.g. you are on beta and your friend on 1.16.221 - it won't work. Please double check it.
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We have the same version (1.17.10.20) 

I also have this bug on RC2, I suspect it might be Java 16 related? Oh wait this is for pocket edition? Why is that tracked here!? NM

Thank you for your report!

However, this issue has been temporarily closed as Awaiting Response.

Is this still an issue in the latest version? If yes, can you please add it to the affected versions (or mention it if you are not the reporter)?

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Cleaning up old tickets: This ticket had been set to 'Awaiting Response', but has not received a response from the reporter (~3 months+) so is being closed as Incomplete. If you feel this is still a valid issue then please comment, or create a new ticket following the Issue Guidelines which includes steps to reproduce the problem.

For any account or purchasing related issues, please contact Minecraft Customer Support directly, as we cannot assist with those here at the bug tracker.

Quick Links:
📓 Issue Guidelines – 💬 Mojang Support – 📧 Suggestions – 📖 Minecraft Wiki

Cleaning up old tickets: This ticket had been set to 'Awaiting Response', but has not received a response from the reporter (~3 months+) so is being closed as Incomplete. If you feel this is still a valid issue then please comment, or create a new ticket following the Issue Guidelines which includes steps to reproduce the problem.

For any account or purchasing related issues, please contact Minecraft Customer Support directly, as we cannot assist with those here at the bug tracker.

Quick Links:
📓 Issue Guidelines – 💬 Mojang Support – 📧 Suggestions – 📖 Minecraft Wiki