Same problem. Tried: reinstalling the game removing TSW3 folder in Documents turning off antivirus None of those helped. I have TSW2 and I had no such problem before, doesn't look like my PC's issue. PC - Xbox Game Pass.
I am having the exact problem. Reinstalled game on XBox app, not turning off my antivirus for a game, removed the TSW3 folder Still no luck.
So this launch I did not log into my Dovetail account, I just skipped it. I was able to create a profile and play the game.