Cannot sign in to Microsoft Account and constant lag/stuttering on PS5 after update

Short description of the issue:

Since the latest update, I am unable to sign in to my Microsoft account, access the Marketplace, or play online on my PlayStation 5.

Steps to reproduce the issue:

Launch Minecraft on PS5 after the latest update.

Attempt to sign in to Microsoft account.

Try to access the Marketplace or online play.

Notice constant frame drops every 2-3 seconds during offline play.

Expected result:

I should be able to sign in smoothly, access online features, and play without performance issues.

Actual result:

The game fails to sign in, the Marketplace is inaccessible, and the game suffers from severe frame drops/stuttering even in offline mode because it keeps trying to sign in in the background.

Additional Information:

My internet connection is excellent (1000 Mbps).

I have already tried reinstalling the game and restarting the console multiple times, but the issue persists.

This started immediately after the last update.