Unable to Connect to LAN Game

Minecraft Build Version 4461841 (date 2020-07-30) 1.16.2003.70

Hardware: Xbox One and Xbox One S; I own a Minecraft disc as well as the digital version.

I am unable to see my family members on the Friends Tab when trying to connect for a LAN game. The game is built with LAN turned on. All Xbox account settings for all are the same and have been verified. I have spoken with Microsoft who are unable to resolve the issue. The only error I get from Minecraft is "You cannot play on Realms because of how your Microsoft account is set up"

Since I am joining a LAN game, I do not need an Xbox Live Gold account. We were briefly able to join together as a family for a couple days, then it stopped working again.

 

Reproducing Error: I have honestly no idea. All we have to do is start the game and its an immediate issue.