When I try to play with 2 others on splitscreen, the game gives me an error saying ‘that person is already signed in on another device’ when the 3rd person tries to join. It does not matter who the 3rd person is. We are setting up the game in the exact same way as before the update. I have signed everyone out of every device they are signed into, restarted the Xbox and the issue persists.
Additionally, when the 2nd person joins, it does not join on their account. Instead it creates a guest account from the 1st person's account. Unfortunately, this means all progress and items of the 2nd and 3rd person are lost.
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same issue. second person is treated as a guest, losing their inventory and third person then Borks the whole thing
I am having this same issue as well. I have tried troubleshooting it but cannot make it work. One thing that might be of note in addition to what Jacob stated is that when the second person joins on the xbox, it joins under the same name as the person who started the session. I noticed this when I joined remotely from my phone to the Minecraft world. Joining from the phone did not seem to impact anything and I showed up with a separate username. But the individual who hosted the world and the next user joining on the Xbox would show up as whoever the host was with a (2) after their username (player one [example_user] player two [example_user (2)]). This is the case even if the other users trying join are logged in with separate accounts. To me, it appears that the game sees the second and third user with the same username as the host and terminates the session.