Fixing Minecraft Multiplayer Account Blockages with Simple Xbox Settings
If you're having trouble playing Minecraft multiplayer on your Microsoft account, there's likely one permission holding you back. You can fix this by changing a single setting in your Xbox privacy settings.
This applies to both Java Edition and Bedrock Edition, including devices other than Xbox. To start, sign in with the Microsoft account used for Minecraft. This will take you to the Xbox privacy settings page under Privacy & online safety.
Select your player profile and open XBOX and Windows 10 devices Online Safety. Here, set 'You can join multiplayer games' to Allow, then submit the changes. If you're using a child or teen account, a family organizer must change these permissions instead.