This is regarding around Minecraft Bedrock on the Xbox One. I use this method where I sign out and sign back into my Xbox account in order for skins to work. But starting at 1.16.40, this method would end up making any sort of online play inaccessible. The servers wouldn't pop up, realms kept saying that it couldn't be found and it says while in a regular world that my Microsoft setup isn't working properly. If there's some other methods I forgot, please do let me know.
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[Mod] OcelotOnesie
Thank you for your report!
We're actually already tracking this issue at MCPE-98917, so I will resolve and link this ticket as a duplicate.
If you would like to add a vote and any extra information to the main ticket it would be appreciated.
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I'm having this same problem too!