Workaround
The workarounds listed on MCPE-90372 may help with this issue.
Second split screen player stuck on generating world (building terrain) screen on one of my worlds, every other world works but this one doesn't. I have never had this issue before and have tried everything but nothing is working
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Additional details from duplicate MCPE-93627
First time I've been on since the Nether update and following updates. Latest PS4 firmware and Minecraft version as of 2020-07-24.
The game appears to not be able to allow a specific local player to load into a specific map (Map A). For context:
Game / Map A is in my Playstation user's account on the PS4.
Second player joins via signing into PS4 with their PSN account (stored locally on the PS4) and hitting `Options` as per usual.
Historically this has been fine. Second player plays regularly with me (we don't actually play separately)
New behaviour:
My local player loads fine.
Second player joining Map A locally as above results in game hanging at `Building Terrain` screen
My player continues to play fine.
Their avatar renders in the world but cannot be hit and mobs ignore them. They're listed in the currently playing screen.
Things we've tried:
Using the second controller signed in as "Guest" on the PS4 works on the Map A The game renders fine and the second player can join. Only this person's PSN account seems to be affected.
When using their PSN account the second player may join other worlds including one existing before the recent updates. It is only Map A that appears to be affected.
We thought it might be something in their inventory causing a bug so we enabled cheats and my user attempted to use the `/clear` and `/kill` commands but received an error message stating the target was not on the map despite being listed in the pause menu.
Sleeping in a bed doesn't work. My avatar interacts with the bed fine but the time skip doesn't occur, indicating that the other account is required to sleep as well.
Uninstalling / reinstalling the game.

I seam to be having the same issue as Matt. Only real difference is that we are playing on X Box One. while my wife's character is unable to load tried in both player 2 and 3 spots my daughter's character loads just fine in both spot. This issue started about 4 days ago. I'm not aware of any updating since her last successful login.

This is the first time this issue has happened to me too. I'm trying again later today to see if anything different happens, but I'm hoping it's resolved soon.

Anyone finding anything on this bug? Also I have discovered that a flying machine at one of my farm was broken at a chunk boundary. No idea if this is related or a separate bug, but I believe that both errors happened at the same time.
Further update, the output storage chests also sit on a chuck boundary. The double chest keeps splitting into 2 singles. I can not remove items from the chest without first breaking and replacing one of them. I not sure why the error is recurring but I have now fixed it twice.
Our teams haven't been able to reproduce the issue so far, but if anyone has a copy of the world save where this is happening it might be useful.
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.

I do have my world where this is occurring so I'll try to export the world today and upload it. The error occurred in my trading hall.

I am having this exact issue also on PS4. Matt Marshall's comment exactly reflects the issue for one user account whilst all other accounts are fine.

I am also having this issue on my PS4 with one user on the same PS4 l, everything is fine with a 3rd user under same conditions

I am having the same issue on switch version.

Same issue here as well. Playing on Switch.

Same issue with me on my PS4, never had this problem before now

I have this same issue with my character. Last night, I tried loading my daughters world (loaded fine) then I added my OTHER daughters’ character (loaded fine) and finally loaded my character in the third spot and got the “Building Terrain” screen. So it appears that this issue is with my CHARACTER as opposed to the game itself.

Update: Gave up. Tired of trying to figure it out. Made a new account JUST so I could play Minecraft with my kids. Also - you cannot play multiplayer without a Nintendo account...? I don’t get that, especially since my kids don’t go online with other people...
Anyway, lost a few building materials, nothing much. But if this happens again I will report it... again... and hope the MOJANG finds out why this is happening. I didn’t lose a lot, but I’ve read some people online lose everything. I was devastated to think I would no longer be able to play on my kids’ world and have to start completely over.

I'm also experiencing the same issue. In a world that my partner and my friends and my brother have a put a lot of effort into, TrashTauk. My partner's account seems to be the affected split screen account, any time he tries to join the world, it says Building Terrain instantly and stays on that screen.
We attempted a workaround we saw somebody else using, to make a copy of that world. This did not work. If he loads a world on his PSN account, I can join and play just fine, regardless of game mode. He can join and play just fine on other world's saved to my PSN profile as well. We played just fine before the most recent update, and once the day of the update, but I believe there was some lag from an undetermined source but we were able to play. Since this issue had been around for other people for more than a week, it's safe to say the most recent update is not the sole cause of this bug.

So while playing my wife fell into some lava in the nether got mad and rage quit. After that she now is stuck loading terrain. We were playing split screen on xbox one. She cannot join any of my worlds. She deleted all of her saves to try and join it didnt work. She created a world i joined her and it worked so I created a new world and she was able to join. Then I had her join the other world and it allowed her to join and finish dying in lava.

Here is a short clip showing how the character looks in-game and what happens if you try attacking them.
[media]
Same problem on our PS4. We have a world that my two sons and I share (I am the owner) and have put a lot of work into over the last few months. He now gets stuck on 'building terrain' when he tries to join. Our experience matches what folk have described above - his character appears visible in the game to other players but is frozen and unaffected by anything you do to it. His split screen sticks on the building terrain message with the Nether backdrop. Tried all sorts, including re-install, nothing working.
Come on Mojang team - people seem to have been reporting this issue for months and I now have a VERY upset 8 year old on my hands. Not Happy!

Having this same issue on xbox series x beta. It's only happening on one account that I can tell. World owner loads world, second account tries to join (splitscreen) and it just sits loading terrain. Let me know if I can get you anything to help this along.

I managed to fix this. We were in survival mode, it would say building terrain for the second player and their character would spawn where they last were but you couldn't interact with them. Tried removing blocks and they didn't fall and you couldn't hit them, they were stuck as a "ghost". I switched to creative, loaded up on splash potions of poison and potions of harming. Used both on the ingame "ghost" of the player which killed them. They respawned in their house and no more error.

My son and I followed this: https://bugs.mojang.com/browse/MCPE-100532?focusedCommentId=808989&page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel#comment-808989
And it worked for us. It's worth a try.
I went about 3x farther than necessary as we have a huge mining system. I was a good 1000+ away from him when I did the exit and save. Re-entered, so did he and all was good. We think it happened to us as the previous time we played, we both exited at the exact same time. We had been working on this world for over two years! Didn't want to lose achievements by turning on cheats and killing or teleporting him.

It looks to me like this report and REALMS-5465 and MCPE-90372 are all the same issue.
It might be helpful if we could a copy of an affected world.
If you are in creative mode or have commands enabled it might work to teleport the stuck player instead of killing them with splash potions. Another option is to push the affected player with a piston.

My 2 sons are playing minecraft on the xbox.
they are playing 2 player split screen on a single xbox.
the worlds are all hosted using the eldest sons account -
when my second son joins the game as guest the game just says "building terrain" and never ends.
we have tried other worlds, we have tried creating new worlds but we always get this error.
I read somewhere that the character migth be ghosted in some world, but how do we know which one, and even if we knew which one, how do you find him.
please help, as we cannot play minecraft as 2 players anymore.

Good luck @smithcl,
This has been going on with my two daughters on their accounts in the exact same way you described for what feels like years now.
There has never been any resolution or fix that Mojang has come forward with that worked.
There has never been any possible solution that has been mentioned that worked.
We have tried to find this so called ghost person but never have.
Now one of my daughters just play on my account so they can play together... at least until it happens again.

I actually logged a brand new ticket and was asked to add to this bug report and then i saw the dates on the reports and its not encouraging...
I was going to setup a new account for my youngest son and see if that works and hopefully it wont happen again
i think he will lose a lot of his progress but at least he will be able to play

Just adding that a new profile worked, but only for a week or so before the issue happened again and now they cant play under my first sons profile.
very disappointing that this issue is going on 18 months with no resolution

Same problem on Series X. It seems to be related to the account in use as my wife’s account works, but mine doesn’t. Difference for us is that there isn’t a second player in the game, whether ghosted or otherwise. The right-hand split screen is stuck on loading (with no progress on the progress bar).
this happens on any world. It’s not specific to any kind of world type.

If it happens it´s also not possible for that "stuck" player to join from an other console, instead of useing Spilt screen