joshdtate

I was having the same problem and can confirm switching to the Xbox Console Companion instead of the new Xbox app worked for me. I now see "Play" instead of "Play Demo."

I came here first and was told to submit a Minecraft Help ticket, so I did that and they pointed me back here. If it helps, I'm attaching my launcher log and this is what I submitted to Minecraft Help:

I downloaded the Minecraft Launcher from the Xbox app on my PC (see screenshot 1). I've tried this a few times over the past few months but the same thing happens each time.
I click Microsoft Login (see 2); my Mojang account doesn't work anymore because I migrated a while ago. It automatically logs me into my Microsoft account (see 3), which does own Minecraft according to the first screenshot. I click Let's Play and it takes me to the main page of the launcher (see 4).
The problem is that the play button says "Play Demo" for the Java edition and "Play Trial" for the Windows edition. The bottom bar says, "Oh no! Something went wrong, and we couldn't connect to the Minecraft services. Try again" but "Try again" does nothing. If I go to Settings > Accounts, it says there is no network connection even though my Wi-Fi is definitely working (see 5).
I've played both Java and Windows before, so I know I own them both. I've tried restarting my computer, signing in and out, reinstalling the launcher, downloading the launcher straight from minecraft.net, and cleaning up cached account tokens. None of it seems to make any difference. I think there may be a bug with the launcher that prevents it from connecting to the Minecraft services on my PC but everything I read about this on bugs.mojang.com just tells me to submit my request here.

I tried their troubleshooting: reseating the power cable on the router (leaving it unplugged for 30 seconds), changing my DNS settings (see screenshot 6), and disabling “Let apps run in the background.” I also noted that I haven’t noticed any network latency, outages, instability, etc. and that I am running Windows 10 version 21H2. That's when they sent me back here and I read about trying the old Xbox Console Companion app.