I went through everything on this https://support.seaofthieves.com/articles/360000792028 article and more. After 2 hours I contacted support and they suggested the article again. That and resetting ALL my Xbox apps didn't work. What did work was this comment I found on an old post:
"I was having the same lavender beard error when trying to play through Steam. I think it was due to my computer being signed in to one Microsoft account and my steam being linked to a different Xbox account. Creating a new computer profile that matched my Xbox sign in seemed to solve my issue. Hope this helps."
To do this on windows 11, I went to the search bar, - Accounts - Your Info - Account settings - Click "Sign in with a local account instead".
Launch SOT on Steam one more time and it should finally work after asking you to sign in one finally time forever.
