Stereo headset adapter - chat is distorted and crackling

If you are talking about the Chat headset, that comes with Xbox One, then No. If you are talking about Stereo Headset, with an Stereo Headset Adapter. then Yes. Using the Stereo Headset Adapter give to both Chat and Game sound to the headset. If you TV,
is connected to the Xbox, your TV sound, will go to the headset.

•Some third-party products come with a stereo headset adapter that may look different from the Xbox One Stereo Headset Adapter made by Microsoft, but they all function the same way.

•You can only connect an Xbox 360 Chat Headset using the stereo headset adapter with a 2.5-mm to 3.5-mm converter, which comes with the Xbox One Stereo Headset Adapter. The Xbox One Stereo Headset does not include this adapter cable.

support.xbox.com/.../connect-compatible-headset

Hi there SS KaRiZMA,

Is this an xbox stereo adapter or the default chat headset that comes with the Xbox?

If its an stereo adapter, please share what mic/headset is being plugged in. Make / Model#.

Hi there,

What is the specific headset you are plugging into the adapter?

Headset's, headphones, or earbuds with stereo sound will have the ability to have game audio along with chat volume that is adjusted with the adapter or in the "Audio" settings that will only appear when plugging into the 3.5mm port which you have confirmed
was the issue with the original controller.

There are some headsets however that do not have stereo sound and are strictly only meant to chat with others, and are usually referred to as chat headsets. These tend to only have one earpiece whereas stereo headsets will have two.

If you have a stereo headset/headphones plugged into the adapter, then the chat mixer slider that is usually found in the "Audio" settings will be controlled on the adapter with the game controller icon button indicating the game audio volume and the button
with the icon of a person indicates the chat audio volume.

"At random intervals the audio will either crackle/distort or cut out entirely."

Check for any updates, such as this XBOX Update controller firmware article.

My preference is the uSB wired method.

It may also be helpful to check Set up and troubleshoot headset adapter