The same issue.
Steps I have already taken with no effect:
Logged out and logged back in with the child account in the Minecraft Launcher, Xbox app, and Microsoft Store.
Verified and re-enabled all multiplayer and communication permissions for the child account on both account.xbox.com and the Microsoft Family Safety website.
Used the "Repair" and "Reset" functions for both Minecraft Launcher and the Microsoft Store app.
Completely uninstalled and reinstalled Minecraft.
Logged into the affected PC with the parent account (it works), then logged out and back in with the child account (still doesn't work).
It appears the update has broken authentication or permission handling for child accounts within a family group.
Confirming that the solution proposed by Siebren Dijk works. I downloaded and ran the Gaming Services Repair Tool from the provided link (https://support.xbox.com/en-US/help/games-apps/troubleshooting/gaming-services-repair-tool), and it completely resolved the login issue. Thank you, Siebren!