This is happening with every server, official and community servers. After a couple minutes joining in, I can't:
pick up any items,
Open doors,
Eat or drink,
Drop items,
Move items between vicinity, hands, and inventory
Zombies freeze and don't take damage,
Take invisible damage resulting in death when I reload.

This began immediately after the 1.13 update. The hotfix Doesn't fix this!
I've done all troubleshooting, hard quit, reinstall, restart router, etc. Yes my connection is good, it's been working fine up until the update! I have tested this problem on Xbox Series X, Xbox Series S, Xbox 1 X, and Xbox 1 S. All replicate the problem exactly the same every time.