Headset issues when connected via controller?

Which headset is it? How is it connected? If it is connected via the controller, then generally you would lose some functions.

I use anArctis 7 headset connected via controller and all the options are greyed out...I use the Controller Audio Adapter

I run through a receiver and I've double and triple checked the audio settings on everything. The sound plays fine and isn't an issue. The receiver/TV should be a non issue because the chat should be broadcast from the system through the controller and into
the headset. The receiver plays no part in this. I can hear people fine when the headset isn't in use. I can hear people fine when the headset is plugged in and I plug the controller into the system via USB cable. There is an issue with the wireless connection
between the system and controller.

Are you connecting the headset via the controller jack? It may be possible that the jack in your controller is bad/faulty. Do you have another controller to check if this may be the issue?

If the headset is only a Bluetooth headset, then it cannot be connected to the Xbox, as the console does not support Bluetooth. However, you can connect a wired headset to the controller via 3.5 mm audio jack. If the headset can be connected that way, then you will have to connect via the wire.

Just to pile on with issues with the adapter, I have an issue with my completely unrelated microphone going completely dead as long as a controller is connected via the adapter. If I plug the controller in via the USB cable, there's no issues at
all. When the controller disconnects, the microphone immediately functions normally again.

If I wanted to use an Xbox headset, I wouldn't have bought headphones, thanks.