My friend's skins are just Steves instead of their skins when they join my world in Multiplayer
Same for when i join their world, I see everyone as Steves
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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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They implemented a new setting called 'Only allow trusted skins' and it is turned on by default. To turn that off, go to settings > profile and turn off only allow trusted skins. You should be able to see your friend's skins again.