Request to mute headset using controller

• Disconnect the headset or unplug the headset cable from the bottom of the controller, and then reconnect it firmly to the controller (in the expansion port for a headset or the 3.5-mm port for a 3.5-mm chat headset).

• Make sure the headset is not muted. To do this, check the mute button on the headset controls. (For a headset, the mute button is on the left side of the connector that is plugged into the expansion port of the controller. For a 3.5-mm chat headset, the
  mute button is a slider button on the front of the audio controls that are in the middle of the headset cable.)

• Disconnect the headset or unplug the headset cable from the bottom of the controller, and then reconnect it firmly.
  

• Check the mute button on the headset controls to make sure the headset isn’t muted. An illustration shows an arrow and a finger pointing to the mute button on the headset controls. An illustration shows an arrow and a finger pointing to the slider mute
  button on the 3.5mm headset cable.

• Increase the audio. If you're using a headset plugged into the 3.5mm port, go to System > Settings > Kinect & devices > Devices & accessories, and then select your controller to adjust your audio options.

• Try using a different controller or headset to check for a hardware malfunction. Update your controller to make sure you have the latest software.
  

I have never run into that problem but their is two ways to mute in party and on headset but they both mute and if its not reading a headset and it works in another controller then it's the controller if not it's the headset

• Disconnect the headset or unplug the headset cable from the bottom of the controller, and then reconnect it firmly to the controller (in the expansion port for a headset or the 3.5-mm port for a 3.5-mm chat headset).

If you have a 3.5-mm chat headset, never pull on the headset cable when removing it from your controller. Remove your headset from your controller by pulling on the body of the headset plug.

• Make sure the headset is not muted. To do this, check the mute button on the headset controls. (For a headset, the mute button is on the left side of the connector that is plugged into the expansion port of the controller. For a 3.5-mm chat headset, the
  mute button is a slider button on the front of the audio controls that are in the middle of the headset cable.)
• Increase the audio. If you're using a headset plugged into the 3.5-mm port, go to Settings, choose Devices & accessories, and then select your controller and adjust your audio options.
• Try using a different controller or headset to check for a hardware malfunction.
• Update your controller to make sure you have the latest software. See Attach an Xbox One Chat Headset to an Xbox One Wireless Controller.

Sir Lancealot 83.

The microphone is muted, not the headset.

The headset and microphone works on another xbox and controller.

I have tried it on 2 controllers on the bone that is muted.