This problem occurred on Friday multiple times. When I play local multiplayer split screen, after some time many in-game mechanics break. The problems I can recall off the top of my head are:

• The block mining animation stops
• Blocks cannot be picked up
• The health and hunger bars freeze
• All mobs freeze, including monsters, and stop inflicting damage
• The map freezes
• On one occasion, a player's avatar was moving while a copy of that was stuck somewhere

I believe I have the latest Xbox update.

The link for a screen capture is here: https://1drv.ms/v/s!As1brWX8sNZ-vBscdJwa6y0uxDW9