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@jazzy 's workaround (only join as local account) also worked for us, but we tried finding another workaround (which can be found in this comment section for Xbox accounts) since my friend would've lost his inventory.

@Skaijie Yep, our world size is above 200+ MB

@Mega_Spud Unfortunately this particular bug is not reproducible and occurs in very rare situations in the latest version of 1.16. My workaround was a success for someone who also had this issue in the thread linked above.

Here's a possible workaround I wrote in MCPE-36190. You'll find it at the bottom of the page in the comments.

Try this workaround I wrote in MCPE-36190. You'll find it at the bottom of the page in the comments.

Here's a possible workaround I wrote in MCPE-36190. You'll find it at the bottom of the page in the comments.

Those of you who are having similar issues to MCPE-62245, MCPE-83427, and MCPE-50135,

Here’s a step-by-step workaround that we stumbled upon after copying our survival world and trying different things:

1. All players need to move away from the glitched player* and unload that chunk (12-24 chunks at least. One chunk is 16 blocks). Make sure the glitched player is currently “locating server”.

2. All players except the host must leave the server. If the glitched player* has a non-Xbox or alternate Xbox account in the world, then you might need to move them away from those chunks as well. (Maybe has something to do with device memory)

3. Host will need to restart or close the server and rejoin with no additional players other than the glitched player* (with Xbox account).

4. If the glitched player* passes the “locating server” window and successfully joins, then all other players may join and go back to the chunk where the glitched player* spawned.

*Glitched Player: a player that is visible in the world while joining but cannot move or join and stuck in the "locating server" window.

If these steps do not work on 1.16.40, you may need to copy your world, enable cheats, and do all sorts of things to remove whatever you think is causing the bug. Try unloading or removing chunks, removing all entities around the glitched player, remove all blocks placed by any player, make sure players are not carrying any items in their inventory and etc.

It seems like there’s an issue with loading chunks or player data when a player is trying to read (render chunks, load chests and hoppers, biome data, player inventories) and write (placing and interacting with blocks and entities) in the world, which might require unloading corrupt chunks to clear chunk memory and reload them without losing data.