This already happened in version 1.16 too. When exceeding 3 players (so, when we are 4 or more players online), mobs stop spawning everywhere. When one of us leave and come back again to 3 players or less, mobs suddenly appear as if they were always there, but we could not see them or interact with them.
Please do not create duplicates for your previous reports (MCPE-127321). If you have new information, just comment on your original ticket.