Some of them don't have the right pack_manifest.json that they should have, because my packs had the same problem and I had to change the pack_manifest.json to the new one.
This has never been a bug, both players need WiFi connection in order to play together by LAN or Xbox live if accounts were made. Internet is not really needed for LAN but it is needed for Xbox Live. If you are sharing your WIFI or made a hotspot then you will be the host and the other player can't host a world
Yes it works as intended, a LAN network is a local network that relates to a WIFI hotspot. If you don't have a WIFI hotspot then create one from your phone if it is available. You can't just play together without any connection.
Resolved: I had to reload the world for the texture glitch to go away