from what I saw on the internet, and tested on my side (on the old launcher, and on another pc with the new launcher it works perfectly) So it has nothing to do with your Microsoft account, it's the launcher that's bugging, it must be a conflict with another file, but which one...
on my Laptop (on Windows 11) it works perfectly, but on my PC (Windows 10 20H1) it doesn't work ... so it's really the launcher and not my Microsoft account associated with the game (and I use a real account not the Game Pass)
from what I saw on the internet, and tested on my side (on the old launcher, and on another pc with the new launcher it works perfectly)
So it has nothing to do with your Microsoft account, it's the launcher that's bugging, it must be a conflict with another file, but which one...