Similar thing is happening for me. Owner of java version for many years. Old (win 7/8) launcher works fine, but new version cannot to minecraft services and thus does not recognise me as a valid customer. Have tried disabling firewalls, but error still occurs. I have ony one Microsoft account.
Support personelle have told me that there are known bugs in the new microsoft launcher, and to use the old launcher in the meantime.
There appear to be MANY duplicates of this error reported in different ways thoughout this project, some dating back to 2 November 2021: e.g. MCL-19984. I cannot find one that that has been assigned. Numerous support messages are blaming people for not logging on with the correct microsoft account, but this ignores the appearance of the error message.
BOT-Arisa has merged MCL-20525 into this Issue. A number of extra people have been merged into this issue
There is no logon fault. Message displayed is "Oh No! Something went wrong, and we couldn't connect to the Minecraft Services. Try Again."
Latest update to the Microsoft Launcher has not resolved the issue. Mojang Account is migrated to Microsoft id and I am using that ID successfully under the old Minecraft Launcher.
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Error may be caused by XAPAPI.cpp doing the account switching (when I hit 'lets play') and receiving an unhandled error 80080300. The Launcher.log file immediately follows that with "Failed to get entitlements for account with XUID <xxxbig number removedxxx>. Error: 16". /