Party chat issue when closing party tab

Hi there,

We appreciate you reaching out to us with this issue. We have a few steps that should be helpful with this issue. Let's try powering down your console, unplug the console and router for five full minutes, and try again. This should delete your cache and
refresh you connection settings.

Same here everytime i close the party chat tab the party get deleted. My friend gets disconnected 3 seconds into joining the party everytime

Of course, mate.

Ok:

Open the Xbox Game Bar and join/initiate a party chat (don’t leave the party till the completion of the solution).

Now open the Xbox Game Bar Settings by clicking on the Gear icon and in the menu shown, click on Party Chat (in the left half of the window).

Then set your Audio Output to the headset and if it is already set to the headset change it to another device (if you only have one single device, then try to use a dummy device from applications like Virtual Audio Cable).

Repeat the same for Audio Input and then close the Settings Windows.

Then click on the Widget Menu and choose Audio.

Now make sure the output (in the Mix tab) and input (in the Voice tab) is set to your headset. And make sure the system sounds are on max.

Then repeat steps 2 to 4 but make sure your headset is set as audio output and input device.

Now close the Settings window and check if the party chat and the game's volume have started to work fine.

If not, then check if disabling Push to Talk in the Party Chat settings of the Game Bar solves the issue

I'm having the same issue the past few days, me and my friends can join a Party chat but NONE of us get the little "donuts" that show you are in party chat. When I click on my name the "Switch to party chat" the tab is there but clicking on it does nothing.
After a few reboots it will finally work. Seems to be a recent issue and NONE of us have issues if all jump on our 360's. All of us are running the XB1 on the DMZ on our routers and show Open NAT. The only thing different is we have also started playing GTA
Online about the same time and its possible that GTA Online is *** up the party chat system.

One thing that worked for me was if you start an xbox party and then you join a fortnite party and go to the voice chat tab it should give you an option to switch to game chat. Also with the new season I can hear people party chats while in a xbox party
hope I could of helped.