Noticeably on the Hive server, all the characters, including the game selector characters are replaced with a steve skin after leaving the render distance for them to appear and reloading them still has the steve skin. This happens with the other servers as well, but for some reason, not all of the other servers are affected by this, such as Lifeboat.  This also surprisingly happens when playing multiplayer with two controllers on the same Xbox. This has also only started to happen during the end of the 1.16 update just weeks before the release of 1.17. This can make it confusing to find friends on multiplayer servers, and nearly impossible to distinguish somebody from another person if playing with the In-Game Username option turned off.