Skin cannot be used in multiplayer mode

After the Better Together release I had access to most of my skin purchases. When I selected my favorite skin from the Avengers pack and applied it to my character. When I tried to launch a multiplayer enabled world I was informed that I could not use the skin for multiplayer mode.

I had to change back to a more generic skin in order to play. Why are we not able to use purchased skins in multiplayer games? This was not an issue with Xbox One/360 before.