I noticed the bug for my first time in 1.14.60, when there were 3-4 players in the same game, some player appeared with the skin of another player, but he saw himself with his skin and he saw other players with the wrong skin. Since 1.16.0 the bug is even worse, now, even if there are just 2 players, ALL players will see ALL other players with the wrong skin, but instead of seeing them with another player's skin, they will all have Steve's skin, but they will see each other with their skin, but not the others. After there was 1.16.1, it said that the bug was corrected, I was very happy so I am going to test this to be sure if it is true, but no, it is EXACTLY THE SAME THING as in 1.16.0. Sorry if the text is a little strange, I speak in French so to write this comment I had to use Google Translate
The bug does not only appear when I use a custom skin, it also appears with Minecraft skins, I used a skin that I created in the skin editor directly integrated in Minecraft, and the other player see me in Steve but I see myself with personalized skib
In 1.16.1, if I look at another player who has a custom skin, I will see it with Steve's skin, and if I look at myself in the second person I will see myself with my custom skin, but the other player go see me with Steve skin
[media]
The bug is fixed when I desable only allow trusted skins