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That happened to my sister unfortunately. She tried to transition her account and kept getting strange errors and minecraft support was very unhelpful. I ended up buying her a new account for her birthday, which I’m glad we can play together again, but it sucks that some strange bug took her account in the first place.
It wasn’t the big, it was Microsoft. They forced the transition and refused to solve the issue you faced.
What’s fucked up is they still have a custom skin my ex made for me on my account, but I don’t own the game.