I can’t hear party chat but they can hear me

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!

Most likely your mic has a broken connection.

Even in the more expensive headsets they use tin solder and brittle wiring which can break with normal use. Best I've found is a set of JVC earbuds called Gumy, and they cost less than 15 bucks. They've outlasted 3 sets of turtlebeaches and with every turtle
beach that failed, it was the mic that failed and always where the inadequate length of stiff brittle wiring was soldered to the pcb board. Which means that every time you adjest your mic, you're weakening and eventually breaking either the wires or solder
points to the mic itself.

Easy way to test is, while in chat etc, is to push and hold the mic's flex shaft towards the ear pad while talking. Which will often cause a reconnection good enough to show up as working.. Till you let go of the shaft.

Earbuds with an inline mic is the way to go.

I thought it may be the mic as well, but after trying other headphones and earbuds too, it still didn’t work. Also I’m my controller settings my mic showed up as Connected.

Hi Fabian, 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.

Please, run 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.

Let me know if it works!

Source:

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

Most likely your mic has a broken connection.

Even in the more expensive headsets they use tin solder and brittle wiring which can break with normal use. Best I've found is a set of JVC earbuds called Gumy, and they cost less than 15 bucks. They've outlasted 3 sets of turtlebeaches and with every turtle
beach that failed, it was the mic that failed and always where the inadequate length of stiff brittle wiring was soldered to the pcb board. Which means that every time you adjest your mic, you're weakening and eventually breaking either the wires or solder
points to the mic itself.

Easy way to test is, while in chat etc, is to push and hold the mic's flex shaft towards the ear pad while talking. Which will often cause a reconnection good enough to show up as working.. Till you let go of the shaft.

Earbuds with an inline mic is the way to go.

Mic will often show as connected even when its not working on the X1.

That being said, i'm out of ideas.