I had this issue just today and managed to get over it. I have two accounts on my PS4 and the second one is only local account, which is used for second controller. When I had both controllers on, the issue appeared. When I logged out the second account and had second controller turned out, I managed to get over the issue. I turned the second controller on only after world was loaded and now kids can play happily.
So issue could be related to accounts which are not connected to PSN.
Thank you, yes the bug still occurs on 1.17.0
I had this issue just today and managed to get over it. I have two accounts on my PS4 and the second one is only local account, which is used for second controller. When I had both controllers on, the issue appeared. When I logged out the second account and had second controller turned out, I managed to get over the issue. I turned the second controller on only after world was loaded and now kids can play happily.
So issue could be related to accounts which are not connected to PSN.