While we can choose skins that have been purchased from the store within my Realms server, anything we create in the Character Creator is replaced with the default Steve skin. I was able to choose the created skins in 1.17.
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Are there any resource packs applied to the Realm? If so, does disabling them fix the issue?

Are there any resource packs applied to the Realm? If so, does disabling them fix the issue?

Yes! Disabling the resource pack did the trick. Thank you very much for the assistance.

Yes! Disabling the resource pack did the trick. Thank you very much for the assistance.