It might be a good idea to post your questions on botu Kodi and LibreELEC forums, but as most of the "staff" people doing support on Kodi and LibreELEC are the same people, I personally get a bit annoyed.
In short:
First, get rid of the first entry in the mysql user table, as it is a humungous security flaw.
Secondly, use passwords. I have a feeling that Kodi (like in most programming languages) sees the av.xml line "<pass></pass>" different from the mysql "no password" option.