Mojang has made no attempt at fixing the bug from the previous version regarding the Minecraft launcher’s refusal to load custom skins in the character creator.
The only change is that now, an error message pops up every time stating the skin’s image format is incorrect, even if the skin’s file is indeed correctly formatted. (The launcher still won’t even look at the file before rejecting it.)
Again, Mojang made no effort to correct this bug from last version. All they did was add a permanent error message.
Open Minecraft
Navigate to character creator
Select to load a custom .PNG skin
What should happen is the launcher loads in the file for the custom skin.
It does not.
Please do not duplicate your reports (MCPE-240538).