Whenever my friend and I try to use LAN to connect and play, it says we can't. We've checked our microsoft account settings, connected them to our phones, etc.

Are you trying to connect to a Realm, or to a shared multiplayer game?
If a realm, what exact message(s) are you getting when unable to connect?

This ticket has been temporarily closed as Awaiting Response. It will automatically reopen when you add information. Tickets that do not contain enough information may be closed as Incomplete.

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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