I am having this exact issue. I signed into a Microsoft account on Nintendo Switch after which I went through the Xbox app having at least twice logged into Minecraft.net with that account and it shows me owning Bedrock Edition with that account. Basically I am able to use and play Windows 10 Edition but only by installing the launcher through the Xbox app. Doing this allowed me to install and play Windows 10 Edtion but not Java Edition. Java Edition says Play but when I attempt to it asks me to "Enter a username for Minecraft: Java Edtion" When I do so it says "Failed to create profile."
I have however noticed that Windows 10 Edition seems to be properly synced to the Microsoft Account. I know it is because it shows the Username where Java Edition says Player. This username even Updated in both the Launcher and on Minecraft.net after I changed it in an attempt to get Java Edition to realize that Bedrock Edition (Windows 10 Edition) is in fact owned by the account and as such should be there. However neither the launcher nor Minecraft.net shows me as having Java Edition despite having Bedrock and it showing through both the Xbox app installed Launcher and Minecraft.net website.
You may notice that I have not said anything about the Microsoft store. That is because nowhere there can I install the Minecraft Java and Bedrock though I can install the launcher. I also installed the launcher through Minecraft.net both Windows 10 version and Windows 7. I own the Launcher in both the Microsoft Store and Xbox App. However I can not just hit get in the Microsoft Store despite being signed into the account which does own Bedrock edition and shows that I own it when signed into Minecraft.net with that Microsoft Account.
ArdinOkira
I am having this exact issue. I signed into a Microsoft account on Nintendo Switch after which I went through the Xbox app having at least twice logged into Minecraft.net with that account and it shows me owning Bedrock Edition with that account. Basically I am able to use and play Windows 10 Edition but only by installing the launcher through the Xbox app. Doing this allowed me to install and play Windows 10 Edtion but not Java Edition. Java Edition says Play but when I attempt to it asks me to "Enter a username for Minecraft: Java Edtion" When I do so it says "Failed to create profile."
I have however noticed that Windows 10 Edition seems to be properly synced to the Microsoft Account. I know it is because it shows the Username where Java Edition says Player. This username even Updated in both the Launcher and on Minecraft.net after I changed it in an attempt to get Java Edition to realize that Bedrock Edition (Windows 10 Edition) is in fact owned by the account and as such should be there. However neither the launcher nor Minecraft.net shows me as having Java Edition despite having Bedrock and it showing through both the Xbox app installed Launcher and Minecraft.net website.
You may notice that I have not said anything about the Microsoft store. That is because nowhere there can I install the Minecraft Java and Bedrock though I can install the launcher. I also installed the launcher through Minecraft.net both Windows 10 version and Windows 7. I own the Launcher in both the Microsoft Store and Xbox App. However I can not just hit get in the Microsoft Store despite being signed into the account which does own Bedrock edition and shows that I own it when signed into Minecraft.net with that Microsoft Account.
I have made Reddit Posts Here:
https://www.reddit.com/r/Minecraft/comments/vs8fip/is_there_a_known_or_less_known_issue_caused_by/
https://www.reddit.com/r/Minecraft/comments/vrdv3v/anyone_know_how_to_fix_this_it_wont_let_my/
Images Showing the issue here:
Edit: Donuts1000 just to let you know I have also today submitted a case report with the text that you asked be included. Hope it helps!