Headset issue

Hi,

Hoping someone can help. I bought a new Xbox one S for my son at Christmas. It came with 2 controllers.

As we also have a PS4 I bought a third party headset (Beeexcellent). Was delighted to find it worked on both PS4 and Xbox without issues. To prevent arguments about whose turn it is with the headset I bought another one. Again, this worked with both consoles.
It uses the 3.5mm headphone jack directly into the controller.

Until last Thursday.

Now neither of the headsets work with the Xbox. i constantly have an icon on the home screen showing a mic with a line through it. This is there whether the headset is connected or not. The headsets still work with the PS4 and on my mobile so i know they
are not faulty.

I've searched online to fix it, nothing works.

Updated the controllers (not needed but didn't solve it anyway) Hard reset the console. Factory reset the console.

Nothing has fixed it. Even after factory reset, it had the crossed out mic on screen, even before i connected a headset!

I have read this error is as a result of a recent update, any truth in this and will there be a fix?

I thought about buying the Xbox Chat device to connect via, but am loath to spend another £30+ if its unnecessary.

:)