Whenever i try to click the "Sign In" button in Minecraft it crashes. My account has no problems because i can normally sign-in to Xbox and Microsoft Store. I can still play Minecraft, i just can't sign-in and join multiplayers.
Here are things that i tried:
"wsreset" on the Command Prompt and restart the PC.
Sign-out and Sign-in back on both Microsoft Store and Xbox App.
Repair/Reset all Minecraft related applications including Xbox and Microsoft Store.
Tried "Gaming Services Repair Tool".
Resetting Windows and Reinstalling (I tried to do this but it also fails with an error "Failed to reset, no changes are made.").
Note: This only happens on my PC, using the account elsewhere works properly.
I fixed this issue finally... Initially i was playing around with WIndowsApps security permissions and that causes some huge issue with Xbox and Minecraft Sign-In. If you are in the same position, this might work aswell for you.
In order to fix this issue, you just need to revert back the permissions to TrustedInstaller and restart your PC.