Unable to remove mute and headset not working. Was working fine a few days ago. Help please

Is the mic muted in the Chat Mixer settings?

If it doesn't work in both devices it means there is something with the headset itself. See if there is any mute button and if that doesn't work change the headset.

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

Are you using one of those headset adapters? If so, that could be faulty. Have you tried the headset on any other controllers? Could be that the controller needs an update or the controller port is bad. There aren't enough details to give you a solid answer.
You said it works on the laptop, so it shouldn't be a bad headset.

Try with a different headset if it still doesnt work itll be the jack port in the controller. Also try the headset with a phone see if the mic works if it doesnt then its the headset.

Same thing haooened to me last week and its my controller 😭