Chatpad is displaying the wrong characters

I may be wrong, but do you have a chatpad plugged into your controller?

For some reason, having a chatpad plugged in disables the Kinects mic and also stops you from hearing voice messages.

Unplug the chatpad, and voila!, problem solved.

My XBox has already been serviced and the chatpad issue occurs on other Xbox consoles as well.

I will contact Service but I think the real issue is that Bestbuy is selling chatpads from the wrong region. This needs to be investigated and fixed.

From
https://support.xbox.com/en-US/xbox-one/accessories/troubleshoot-the-xbox-one-chatpad

Wrong characters appear when keyboard is pressed


Solution 1: Check your language settings

Make sure that your console and chatpad language match and that you are in a supported country (see

Supported countries). Your chatpad serial number ends with the letter B, E, F, G, or S to indicate which language it supports—British-English, US-English, French, German, or Spanish.

To check your settings, follow these steps:

1. Press the Xbox button to open the guide.
2. Select System > Settings > System.
   
3. Select Language & location to confirm or update your location and language to match your chatpad.
   

Solution 2: Check to see if you are in Special Character key mode

You may be entering Special Character key mode if you are pressing one of the
^, ~, ¨, `,
or ‘ keys followed by a, e, i, o, u, or y. See
Special Character key mode to understand this functionality.

Solution 3: Check the chatpad mode

Check to make sure you are not in or entering one of the special modes described earlier on this page (such as Orange mode). If you see the Orange, Green, or Caps key lit, you are in the corresponding mode. Exit the mode by pressing that lit key.

Solution 4: Update your controller

1. Plug your chatpad into the controller.
2. Press the Xbox button to open the guide.
3. Select System > Settings > Kinect & devices >
   Devices & accessories > More options.
4. Choose the update option, then follow the prompts.

For more information, see
Update your Xbox One Controller.

smartglass is the new chatpad, although there is a chatpad on the way.

Hello. Sorry to hear that you are having issues with your Xbox 360 Chatpad.



There are two tabs on either end of the chatpad that fit securely into the screw holes on the bottom grips of the controller. If these are not secure then the chatpad won't be fully operational as the connection at the powerport will be loose.





Connect the Xbox 360 Chatpad to a controller:



1. Turn the controller and the Xbox 360 Chatpad so that the bottom of each faces up.

2. Align the chatpad connector plug with the controller's expansion port. Align the two posts on the chatpad with the holes on the controller.

3. Push the chatpad onto the controller with even pressure until they snap together. There should be no gaps.





Here is a video demonstration: http://youtu.be/S-mWXFmSBWc?t=40s