The above solution did not work for me. Please see ticket below for further detail:
@Zgajak
Do you have installed both older and newer Launcher? No, I uninstalled all launchers, before re-installing the launcher via the Xbox App
Are you logged in in both Xbox app, MS store, and Launcher with the same MS account? Yes
Have you tried signing out of all your Windows Apps, and the signing in again? No
Is your Windows and associated apps (Xbox app, MS store) up-to-date? Yes
Have you tried to re-registering MS store as written here? This link give phishing warning
Do you have enough free space on your disc drive? Yes
Have you tried downloading 'Xbox Identity Provider' found here https://www.microsoft.com/en-us/p/xbox-identity-provider/9wzdncrd1hkw#activetab=pivot:overviewtab (or in MS store)? Installed
Do you use VPN or any of the incompatible software on machine you try to log-in? No
Could you provide us with more in-depth repro steps? There's not much to reproduce. History wise. I own Minecraft Java version. I then proceeded to install Minecraft for Windows via MS Store. Minecraft for Windows refused to open after installation was done. I proceeded to try and open the game via both my Minecraft launchers I had installed on my PC. The one launcher said "game incompatible with launcher", while the other launcher gave the same error "Failed to Start Game" whenever I clicked on the play button. I then uninstalled both launchers and any trace of Minecraft for Windows. In MS store I click on the Minecraft Java + bedrock combined version which opened the Xbox App. I proceeded to install the Minecraft launcher via the Xbox app. Then I tried to install Minecraft for Windows via the Minecraft Launcher, but it did show any progress so I proceeded back to the Xbox app where I chose to install the game and I could see it downloading and installing. After installation was done, I clicked play in the Minecraft Launcher and immediately got the error again "Failed to Start Game".
Does not work. Steps taken:
Uninstalled Minecraft for Windows
Uninstalled Minecraft Launcher
Re-installed Minecraft Launcher via Xbox App
Launched and update Minecraft Launcher
Re-installed Minecraft for Windows via Minecraft Launcher
When clicking on Play the above error appears
All defaults were selected (no custom installation folders)
See ticket MCL-21615 for in depth detail on the issue.