Xbox Co-op Caves Freezing/Can’t Collect Items

[star-doer]

Entering certain (random) levels in the caves freezes the game and the caves, not allowing mobs to be killed, or items to be collected from rocks or mobs. Any drops just sit on the floor. Player 2 is still able to kill mobs, but not collect items that drop. This bug was slightly fixed in the most recent update, as it was worse when 1.6 first released for Xbox.
Playing Co-op split-screen on Xbox Series S with controllers on Version 1.6.9 build 37. Unable to provide error logs or a save file.

 

[archonact]

Just to add to this, the problem doesn't seem to be specific to just Xbox. I'm having the exact same issue with cave freezes in co-op, same build as above but on PS5.