Steve glitch (all players and custome entity becomes steve)

If you join on some server (for example "The Hive") all players become steve and all other custom entity. This also happens on other feautured server like galaxite and cubecraft. I contacted hive support if there is any fixes and they said something like "this is an issue in minecraft and they can't fix it".

Reasons why this needs to be fixed:
1. This bug is way back in 1.16 but no one reported it here so I am reporting it
2. The overall experience in feautred server is gonna be anoyying because you gotta relog if you want to fix it and sometimes steve glitch can't be fixed
3. It will make minecraft bedrock less buggier