In 1.21, multiplayer server, capes won't display unless you are wearing an elytra, and standing near another player will change all players in the area to the same cape.
Same in 1.20.50, on Windows 11
This has been happening on my realm for over a year and is getting worse. Chat will function well for a short conversation, but if people keep talking, or more people join in, it starts skipping comments, and the lost comments will show up way later randomly, even after the person who typed it logs out. we have started using discord to read off what's showing up, to who, and it's VERY random. Doesn't seem to matter if it's on PC, Xbox or PS4, none of us see the same conversation.
As a work-around, using a VPN has completely gotten rid of the problem (my realm is huge, around 1.5g now). We shouldn't need to pay for something extra to work on our realms though!
Can also confirm. Major frame drop on entire realm, especially when someone on a Playstation is near a happy ghast.