CodeMonkey
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I've since tried a full reinstall of the game on iOS and that also does not solve the crashing upon log into XBox live with a child account.
I'm experiencing this on my two children's accounts as well.
The sign out sign in workaround does not work for them however.
Anytime their accounts are signed into XBox Live, Minecraft 1.2.9 on iOS crashes near immediately.
Even though it's not listed in the changelog, the update 1.2.10 update on iOS appears to have resolved the issue of the game crashing immediately upon log in with a child account.