First, you'll need to make sure the console is set as your Home Console. That is one of the requirements for Microsoft for license sharing, to my knowledge, and if it's not your home console, you have to be actively logged into it, not just have an account on it. If that has been changed, then that's fine, please read on.
Along with that, please make sure your son is going to Europa, not the small round node next to it (which is an advertisement for upgrading to Deluxe).
Lastly, if you have further issues concerning license sharing, you'll need to contact Microsoft, as license sharing is a Microsoft/Xbox feature and not a Destiny/Destiny 2/Bungie feature. Bungie does not support license sharing.
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thanks FYI its not working on the home xbox either but i think he has run out of patience and is just going to buy it
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Just a bit of extra info; the DLC unlock keys that are downloaded are only downloaded automatically for the owning account. Any sub accounts that are using license sharing have to manually download the unlock from the Manage Game and Add-Ons menu. I'd suggest making sure that's not the issue first. Bungie doesn't directly support license sharing, so it is possible that with Beyond Light, license sharing may no longer work.