Xbox chat adapter chat and in game audio major issues

I sent this to Turtle Beach with no response:

"Hi, I have completed the 3 steps to get a FREE Xbox One Headset Adapter for the Ear Force Phantom but I have a question. When my adapter arrives after March 1, 2014 will I still be listening in Stereo if the Dolby Digital 5.1 patch is not in the next major
update. I ask this because the next Gen XO Seven and XO Four Headsets use the adapter for game and chat audio. Will the Phantom game audio be coming from optical and chat via the adapter or both game chat audio coming from the adaptor. If the game chat audio
is coming from the adapter will there be a firmware update for the Phantom".

I'm having similar issues. Upgraded the firmware on the controller first. The headset works great for Game Audio wirelessly from the transmitter, but as soon as I plug it into the Microsoft Chat Adapter, game audio begins dropping out and chat doesn't function.
When I unplug the headset from the Chat Adapter game audio works great.

The chat adapter seems to be the issue.

Any ideas?

Press and hold the chat button on the adapter, this is the audio balance for the chat and game and if the game button is on full the chat will mute. The volume on the right side of the adapter is the overall volume. This may be your issue, it may not.

You have to turn the game audio down to zero on the adapter, basically press the chat button on the adapter unroll you hear a double beep.

The reason for this is that the Xbox One is sending the game audio and chat audio through the adapter. Your also getting the surround sound through the Turtle Beach transmitter. So if you don't turn the game audio down through the chat adapter you'll get
stereo and surround sound in your headset.

Actually the chat adapter that they are selling as of today does send both game audio and chat audio. There are even two buttons on the adapter itself that you can use to adjust the game audio vs chat audio percentage. The new Polk headset and the two
new Turtle Beach X1 headsets get all game and chat audio through the new stereo headset adapter that was released today.

I imagine that your modified version of the adapter is actually a much better solution for 3rd party headset users, because it was modified off of the chat microphone and adapter that came with the X1. It was designed to just deliver chat audio back and
forth.

Now that Microsoft has gone down the road of both game and chat audio coming through the controller and adapter, it has changed the playing field. It is great if you use a headset that doesn't have any other audio signal coming to your headset.

Also, I did look through the link above. It is where I got the idea to turn game audio to 0% and chat audio to 100% coming through the adapter. Thanks for the idea though.