Whenever I play with my brother split-screen and try to sleep, my head is the only part visible while the rest of the body is disappeared into the wall. I don't know if it shows on the other side or not, I haven't been very concerned about the issue to experiment, but every single time I use the bed that happens. And in turn, when my cat tries to sleep on top of me, she instead sleeps on the floor on the end of the bed opposite to my body.
This issue doesn't need to be solved immediately as it doesn't affect gameplay that much except that I can't get cat gifts now.
I'll try to attach a picture if possible.
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It happens also on Nintendo switch!!

I also experience this on PS4 Bedrock 1.16.0.
Additionally, if two beds are right next to each other, when both players wake you'll be "all up in each others faces" / inside each others heads.

A possible fix may be moving your bed away from the walls, but I can't confirm this since the world I had experienced a glitch where the second players screen gets stuck on "Generating Terrain".

Shulk xeno: can confirm

the error is still in the version 1.17.10