Oh, I didn't realize you converted your world.
But both images are taken at the same time (both after the nether update).
You need to leave the world to edit the multiplayer settings.
It's a feature. Go to "Settings" > "Profile", and disable "Only Allow Trusted Skins" to stop seeing this.
You probably pressed the F1 key.
It also happens when the player is holding gold and the piglin is already bartering. It happens anytime you can’t barter.
Still in 1.16.0