I can for some reason hear myself

Hi Chicken, my name is Rodrigo. I'm an Independent Advisor and a member of the Microsoft community and I'd love to assist you today.

I am sorry to hear that.

Are you using an official Xbox Controller?

Please, if you have one, adjust the settings using it.

Press the Xbox button to open the guide.

Select the Audio & music icon at the bottom of the guide.

"Mic monitoring:

This allows you to control how much of your own voice you hear in your headset.

Move the slider to the left to reduce the amount of your own voice you hear; move it to the right to hear your own voice more clearly.

Moving the slider completely to the left effectively eliminates your mic input from your headset audio."

You can also try the audio setup tool.

Press the Xbox button on your controller to open the guide.

Select Profile & system > Settings > General > Volume & audio output.

Select the Audio setup option under Advanced.

Highlight the audio setup option you wish to use and then press the A button to begin the audio test.

For more information: https://support.xbox.com/help/hardware-network/display-sound/troubleshoot-sound

Hi there! Thanks for reaching out to us.

There's currently a service alert specifically for parties on Xbox One. We recommend keeping an eye on the service status
page for any updates regarding this.

If you happen to still notice this issue after the service alert has lifted, we recommend trying out the steps from our Party Audio

troubleshooter.

Be sure to keep us posted on your progress!

[quote user="XBOXGamesNutter"]I wanted a machine that would serve me as a gaming machine and an entertainments centre so myself and my partner can enjoy movies[/quote]

Same reason I brought an Xbox One.

I'm sorry to hear about the problems you're having, but sadly not every Xbox One will work. Some will be faulty and yours is.

I'm having a very similar issue. For whatever reason game audio isn't coming through entirely. Like in PUBG I can hear other people walk, but not myself. When I'm driving I can kind of hear the car, but it's almost like I'm hearing it from a distance.
For the Arkham games I can hear Batman's internal dialogue, but no one else speaking. The same thing occurs regardless of the headset or controller.

it is either mic monitoring ( a good feature that means you don't shout when using a headset)

or whoever you are connected with has there volume to high and you just hearing you voice bounce back.