Microsoft accounts when online (can access Xbox servers) and the same Microsoft account with only LAN access (offline, cannot access Xbox servers) are not linked properly. This causes a LAN player to lose their entire inventory by disconnecting from the server and join back with their online Microsoft account. This connection to Microsoft overrides their previously gathered items during their LAN session, making it impossible to recover those items. It's frustrating.
This bug affects all versions that have an option to sign into Microsoft accounts. The problem is Microsoft. Period. I really hope someone at Mojang understands how to simply link local/offline and online Microsoft data in LAN worlds before Java Edition's unfortunate wide use of Micro$oft accounts.
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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.
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Thank you for your report!
However, this issue has been temporarily closed as Awaiting Response
Could you please provide more details or/and media files. As such we have no repro of this issue.
Also, just a reminder, to make your bug report as effective as possible, please try and include the following steps to reproduce the problem:
If your ticket does not look like the example given here, then it's likely to be closed as incomplete.
This ticket will automatically reopen when you reply.
Quick Links:
📓 Issue Guidelines – 💬 Mojang Support – 📧 Suggestions – 📖 Minecraft Wiki