This bug has been here since 1.16.200-

So apparently if you have a weak wifi or wifi without internet it will make your game lag and freeze & often crash.

Steps to produce :

1. Get a weak wifi or wifi without internet (Hotspot)
2. Launch Minecraft 

Observed Results :

1. When launching Minecraft it will often crash.
2. Entering a world will make the game freeze.
3. Cannot Join Local multiplayer.

Expected Results :

1. Weak or non-internet wifi should not cause the game to freeze nor crash.
2. Joining a local multiplayer world should not crash the game.

Note : This bug happens to both minecraft with signed Xbox and Non-signed Xbox.