Equipping Mario skins from the mashup is not possible on my switch. We have another switch in our house, and do not have this problem on that switch. The other skins are available to equip, but Mario skins don’t show an equip icon, they just load indefinitely. Mario skins are also not available in the store. There is just no option of using them and I’ve tried everything.
I tried online play, offline play, logged into Microsoft account, logged out of Microsoft account, single player, multiplayer, uninstalled Minecraft from my switch entirely, even tried to delete cloud data, but apparently, there is no option to erase it from the cloud.
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It's fixed now! Yay! For those reading this that are still having this problem after the update, just do what is mentioned above by Swordking, and hopefully it should fix it. Otherwise, I'm sure you know what to do, in case you don't, it's this: just type it here. Which leads me to this: thanks, dude. Had I not done this I wouldn't have been able to do anything regarding skins at all, as prior to deleting and redownloading after the update, it wouldn't even let me change skins in any degree as the whole menu system for the skins was bugging out.
Affects Release 1.20.80
This time classic (custom) skins in Dressing Room won't even load the skin-pack when entered via "Classic Skins" button, thus being completely disappeared, workaround of MCPE-180885 may work as this works around by first pressing "Classic Skins" icon, to set the character as the skin, then return to Dressing Room menu, and clicking "Change Skin" after that (this will go to last good UI instead of the broken one).
Update: seemed to be fixed thanks to the backend change.
I don't know if this is due to a UI change on the skin selection screen, but in version 1.21.1 Mario skins are not displayed in the list and cannot be equipped.
6/23 We have confirmed that the solution using the old UI does not respond when pressing the changing room button immediately after startup. This made the workaround no longer available.
It seems that the problem that occurred in MCPE-152216 where imported skin packs cannot be equipped on a PC or smartphone does not occur.
6/25 I confirmed that it was fixed by updating the server side or without any Minecraft client updates. Thank you for your response.