When both use custom skins, the first and second players to join the game will exchange their skins, and the third player will become Steve
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Please attach a screenshot without any resource packs/behavior packs applied.

Added screenshot without any resource packs/behavior packs applied.

Thanks for the screenshots Chris.
Just to confirm do you know how to reproduce this issue? Was it as simple as joining a multiplayer game or is it like MCPE-48207 where it happened when players changed their skin in proximity to others?

This appears to only happen in 1.16.20 builds. 1.16.1 does not have this issue. Needs to get implemented into 1.16.20 otherwise the fix for this in 1.16.1 was pointless.

Added more screenshots
I don't see a skin swap for the 1st and 2nd people in the pictures, and the issue with Steve skins are being tracked at MCPE-78206.

This I think was fixed in 1.16.20.54. Whatsoever I cannot reproduce in 1.16.100.50 beta.