Getting user MyAccount(2) when joining LAN game after v1.21.90

My family & I play Minecraft on our Xbox Series X in 4-person split screen LAN game only. After the 1.21.90 patch was applied, I could sign in and play, but when my wife joins with her Xbox Live account, she is given a generic account of "MyAccountName(2)". When we add another account to our LAN game, also with it’s own Xbox Live account, we get an account of "MyAccountName(3)". When adding a 4th account, the game crashes with the msg: "Cannot join world. The account you are signed in to is currently playing in this world on a different device." I tried resetting the Xbox X, clearing the cache and uninstalling and reinstalling Minecraft. Nothing helped.