Error code Drowned after update to 1.21.120

My kids play Minecraft Bedrock edition on a Windows PC. On Thursday, the game updated to version 1.21.120 so they could play on their shared world with their friends. After the update, we cannot sign into their profile in the game, it keeps giving the error code "Drowned." We can properly sign in to the Xbox app, Windows Store, and the Minecraft Launcher, just not the game itself. Starting the game brings up the sign in window, but after selecting "Let's Go," the game launches without ever signing in.

The game updated on their other PCs and stayed signed in just fine. Just this one computer is having trouble. They always use the same profile to sign in to their Windows user account, Windows Store, Xbox app, and Minecraft.

I have tried:

• Signing out of Windows Store and Xbox app, rebooting, and signing back in to each service.
• Changing their Microsoft password.
• Uninstalling and reinstalling the game.
• Using the Xbox app "Verify & Repair" tool on the game.
• Using the Xbox app "Gaming Services Repair Tool"
• Using PowerShell to remove GameServices and reinstalling that from the Windows Store.
• Open Services and set Xbox Live Auth Manager to automatic start
• Signing into Windows Store, Xbox app, and Minecraft with another profile we have. This works just fine. For some reason, only their main profile cannot sign in on the PC that has all of their saved worlds.