In split screen multiplayer, when logged into Xbox live profile and joining as player 2, items are lost and tamed pets not longer obey commands or follow player. When saved, exited and logged back in previous items and pets now work again but anything that was gained during the last session is lost again. This keeps switching indefinitely and seems to have no way of predicting when it will happen.
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My account is saying that it is "misplaced"

We are having the same issue. Everything is fine with two players playing split screen in survival mode, but if we quit and try to come back in, player 2 has lost everything and is back at spawn point. This also happens in creative mode.

Thank you for your report!
We're actually already tracking this issue at MCPE-55815 and MCPE-50467, so I will resolve and link this ticket as a duplicate.
If you would like to add a vote and any extra information to the main tickets it would be appreciated.
If you haven't already, you might like to make use of the search feature to see if the issue has already been mentioned.
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We are still looking into the issue with player data changing or being lost at MCPE-55815.
If the issue is still occurring for you in the latest version (currently 1.16.1) please could you add any steps to reproduce the issue at MCPE-55815.
Also, if you have a copy of the world save available, you might like to share a copy of it for investigation.
On Windows 10 you can use the Export world feature.
On Android or iOS you need to use a file explorer to navigate to Device storage > games > com.mojang > minecraftWorlds
On Xbox or Switch the only way is to upload it to a Realm, and then download the world on Windows 10 or Android/iOS. (Please do not purchase a Realms subscription just to provide a world to us - but if you have a Realm already this may be a viable option if you wish to do so.)
If the world is larger than 10MB you can upload the world to OneDrive or a similar file sharing site, and then share the link in a comment at the main bug ticket at MCPE-55815.
Thank you for your help, and for your patience while we look into this bug.
Quick Links:
📓 Issue Guidelines – 💬 Mojang Support – 📧 Suggestions – 📖 Minecraft Wiki
I have also been having this issue for several years now. It seems to only be player 2 that is affected and our temporary fix has been that before leaving the game player 2 has to place all items and armor in a chest at spawn. There was a time when this first started happening that player 2 would spawn in at build limit above world spawn but would at least have all their inventory. Now, not even the player's skin seems to be maintained in this random bug.