I believe I have just added some photos of the problem. Unfortunately I don't have the multiplayer screenshots as I haven't played with someone since yesterday.
I have that in settings but it still doesn't work. Another thing, is when I go into the app it always makes me sign in with my Microsoft account, even though it shows my username above the original Steve. I'll send a video of what I mean.
The first screen of the person on level 28 is my screen and the other screen is the other player. This should show how it isn't loading.