Cape on character not appearing in multiplayer

What kind of server are you talking about. I'm not able to reproduce on a Bedrock Dedicated Server.

If this is related to a featured server you would need to contact them directly as its possible their software doesn't allow or doesn't yet support capes.

Cleaning up old tickets: This ticket had been set to 'Awaiting Response', but has not received a response from the reporter (~3 months+) so is being closed as Incomplete. If you feel this is still a valid issue then please comment, or create a new ticket following the Issue Guidelines which includes steps to reproduce the problem.

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