When on multiplayer, players with custom (imported) skins appear as steve. Before 1.16.1, players would appear as each other's skins , but now we just appear as steve unless we use free skins from the marketplace or the skin creator inside minecraft. This also may be in Java, but I'm not sure.
Comments 2
Cleaning up old tickets: This ticket had been set to 'Awaiting Response', but has not received a response from the reporter (~3 months+) so is being closed as Incomplete. If you feel this is still a valid issue then please comment, or create a new ticket following the Issue Guidelines which includes steps to reproduce the problem.
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Do you have the "Only Allow Trusted Skins" option on? This will only show Marketplace/Character Creator skins.