The problem was resolved with 1.19.60, and now is back again with 1.19.62!!
Again no option to connect to LAN. Nothing pops-up in the 'friends' list.
Unfriending/Re-friending only works if you are on two microsoft accounts I guess. In our case we are on a single one, as we share the computers/games within the family.
For me it now all works again, since last week. Indeed at the same time the Switch issue was reported as resolved.
But apparently the problem still persists for the commenter here?
Probably is, as there is also win 10 involved there. Added a comment in there so they could check if it also coincides with the 2022h2 update
I also have the LAN functionality failing
And in my case there is a very clear root cause. Before running the windows 10 2022H2 update everything worked. AFTERWARDS, it didn't work. Nothing else changed in the meantime.
Although I'm not familiar with Switch, this may be linked to the same win10 update issue.
See also my ticket MCPE-166175
Same here on my Windows 11 to Windows 10 computers on LAN.
Very annyoying as the issue was there recently, got resolved and now pops back up.