When i play Minecraft on multiplayer after a while or if i get teleported everybodys skin turns to steve! This bug actually drives me insane! Its really annoying seeing steve everywhere especially in servers when im im playing skywars and my teamate looks like my enemy!
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I have only allow trusted skins on

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We're tracking this issue in MCPE-78206, so this ticket is being resolved and linked as a duplicate.
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In Settings > Profile, do you have "Only Allow Trusted Skins" disabled?