For some reason it only shows two names to invite people to my island on Minecraft lifeboat...

Hello Macey, this is Manuela. I'm an Independent Advisor and community user like you, ready to assist with this.
Not a Microsoft employee.

I'm sorry to hear you're experiencing this unexpected problem when playing Minecraft.

In situations like this, the recommended action is to reach out to the dedicated game support. You can do it by visiting the next link:

https://help.minecraft.net/hc/en-us/requests/new

In case you need to know when it's necessary to reach Microsoft support or the dedicated game support, please visit this article:
https://answers.microsoft.com/en-us/xbox/forum/...

I reset my xbox and logged out of my account 100% But it did not change anything. Even when people invite me to partys or games it shows my gamertag as my old one so I know im not the only one who sees it. But in GTA V, Need for speed Heat, minecraft,
roblox, world war z, and ark people see my name as my new GT in game.

Hey there, Lifeboat Minecraft server isn't run by Microsoft, so we can't unmute you.

But, I can refer you to the Lifeboat support page.

https://lbsg.net/support/

-, Xbox Ambassdor

You may be able to find some people in the Minecraft discord channel.

https://discordapp.com/invite/minecraft

I found some mooshrooms in this seed. 9222902209992299 It is about 80% water but I guess the Mushroom biomes only spawn as an island. Anyway there are two medium islands in the North on that map.