(Xbox) MCC Game Chat Issue

Hello,

My friend seems to be having an issue with game chat.
I have talked him through the audio settings to make sure he does not have to push the communication button to talk and I’ve made sure all settings support game chat.

However, he is still unable to talk in game chat. It’s pretty melting since I want to play while communicating in game chat, but since the game chat does not allow him to speak we can’t play the game together unless we use xbox live’s party chat feature. This defeats the purpose of communicating with random players and meeting new people.

Things to note:
We are xbox players
My friend is not audio banned.
Accessibility and audio settings have been updated to support, but I’m still open to suggestions on this.
His headset is working. He can be heard in party chat.
My own game chat works and I can hear others in game chat.

Thanks in advance.