Preformance issue

Same issue for me. Preformed a hard reset twice and it's still not working.

Go to your PC, go to my computer, find the device itself and open it. Check if there are any files after you format it. I'd so, delete them manually. After that reformat it to FAT32 by right clicking it and choosing format, not quick format. Take a few extra
seconds to ensure its done right. Afterward, ensure no random files are on it. Stick it in the front USB port and go to settings, memory devices and chose to format your USB device for only Xbox use. If it still is not working after all that, perhaps the thumb
drive is corrupt for Xbox use. Go buy another SanDisk with official Xbox packaging to ensure its 100% compatible. Use the old thumb drive for music and videos you can use in system player when it's formatted to fat32. Just a suggestion.

Please attempt to preform the previous solutions and try again. If you have already done that but the issue persists, try reinstalling the game as well.

Since you have already tried all the basic troubleshooting steps, I'd recommend preforming a reset (Keeping games and app) and see if the issue is fixed.

If you've preformed the above steps and still can't connect to a party or send messages to your friend, he/she may need to preform the suggested steps above as well.