When I go out of range of my friend and I look away for a few minutes and I go over to see what they are building, their skin is a Steve instead of their normal skin (that they made in the Character Creator). Only started encountering this after 1.17-ish, and have had it since.
Linked issues
Comments

Thank you for your report!
We're tracking this issue in MCPE-78206, so this ticket is being resolved and linked as a duplicate.
If you would like to add a vote and any extra information to the main ticket it would be appreciated.
If you haven't already, you might like to make use of the search feature to see if the issue has already been mentioned.
Quick Links:
📓 Bug Tracker Guidelines – 💬 Community Support – 📧 Mojang Support
📓 Project Summary – ✍️ Feedback and Suggestions – 📖 Game Wiki