I came into Minecraft and a pop-up told me about the 1.16.40 Hotfix coming to my device. I clicked OK and went into Minecraft. I saw my character's skin had changed, so I went to change it back. I entered the character creator but saw only one of my skins were saved. The others were Steve, Alex, an empty slot, and another Alex. I then found out I was signed out of my Microsoft account. I clicked the Sign In button but a pop-up came saying It couldn't sign me in. I retried many times, but no luck. Before this happened, I was in the marketplace looking for one of my lost skins (The skin was free, so it wasn't so bad). I went to the search button but it then said that it couldn't connect to the Marketplace, and it said I should check my connection, and my Internet was perfectly fine 2-3 bars. I reset the app, but it still didn't work. I clicked the search icon and this time the text didn't pop-up, but it was still taking a long time to load. Please fix this, I can't do anything without it (Pretty much).
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Are you still having this issue in 1.16.210? If so, what is the exact message shown now (or just attach a new screenshot)?
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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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This is exactly what happened to me on switch!