Yes I have that issue also in teams on Beta 4 (not Beta 3)
skillquest
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Tried to reset the NVRAM/SMC.. no go... booted to recovery mode and in the macOS Recovery Terminal: rm “/Volumes/Macintosh HD/var/db/.AppleSetupDone” so that it would lead me through creating a new account. The first setup screen shows up asking for the language and I choose English... the screen goes grey and then back to color and then lands back on the first screen asking about language again. It is showing the same behavior as when trying to open a profile after correctly putting in a password for an account. So it has nothing to do with passwords but has something to do with the switch to a user context after the first screen is shown. This one is very strange and I have not seen this kind of issue before.
In addition, changing the password through recovery mode and reinstalling macOS Big Sur Beta 3 through recovery mode does not fix the situation. Even though the correct password is recognized, the desktop never appears and it just brings you back to the profile selection screen.
safe boot does not change the behavior :(