EDIT 2: Turns out corrupted router firmware caused an issue with ports not opening properly. Linksys WRT1200AC. re-flashing firmware and restoring an old settings backup resolved the issue. Will update with stability later as testing continues.

EDIT: Was fixed. Came back next day and it's not working again. same issue. Back to the start.

Fixed! Turns out VPN software installs network devices. After resetting modem and router settings did not work, I followed the xbox teredo troubleshooting tips.

First you need to go to device manager and click the network adapters. I had two VPN network adapters that I removed. I don't use them anymore. The one that read the same description in the xbox teredo tips was the proton vpn adapter. The windscribe VPN did not have the same description. Both were removed then click settings and go to gaming then click xbox networking and click fix it and reboot. That pretty much solved it for me.

I can post system specs/router/modem settings and logs for any troubleshooting purposes.

Start world. Loaded in. After a few minutes I receive the Oops! Your Microsoft Account was disconnected error.

I show up in friends joinable list for that few minutes but they are unable to connect, regardless of their attempts I receive the error.

This has been an ongoing issue. I am able to connect to  some servers however.

The steps I have taken to resolve the issue non of which has a fix:

1. NAT set to open/A/Remove double NAT.
2. Change Microsoft/xbox live account privacy settings to allow all multiplayer and connection options.
3. Logout completely from all microsoft/xbox accounts on PC and re-login. Removed all Xbox related apps and logged out and re-install and login.
4. Reset/uninstalled/logged out/logged in Minecraft.
5. Reset/logout/login Microsoft store.
6. Reset Internet options/reset Network settings/reset Network adapters.
7. Changed CheckNetIsolation loopback settings.
8. Restarted PC countless times.
9. Changed/rebooted Modem settings/Router settings to pass any xbox/Minecraft ports.
10. Launched Minecraft from store and search bar.
11. Changed windows firewall to allow Minecraft.
12. Countless web searching.
13. Waited for/installed Minecraft updates

Any extra help or suggestions would be appreciated.