Xbox party chat for Windows 10 is not working.

You can also check if Party chats work well on the Xbox app on PC (Windows 10/11) or on your phone.

The teredo address is obtained and works fine, however after checking all the firewall startup settings and making sure they were set to what you told me, party chat still does not work. I receive the same error. No, I do not have a VPN, and the only Antivirus
software I have is Windows Defender which doesn't affect the Xbox app whatsoever. I even tried the Xbox Beta app for W10, and that doesn't seem to work either. Could this be something on Microsoft's end or is it certain that this is caused by my network?

So I ran into this problem and I ran into it again. It is quite annoying. This is caused by your windows firewall settings basically the ones that are set in the windows settings. This is can also be caused by your antivirus software, and it can also be
caused by VPN services. Change the xbox app to being trusted and figure out which inbound or outbound connection your PC is blocking and that will fix the problem asap. Otherwise start here!

Solution 6: Windows services required for Xbox Live multiplayer and party chat have been changed from their default values

There are four key services that are required for Xbox Live multiplayer and party chat to function on Windows 10. If any of these services have been disabled, you will need to re-enable them in order to use Xbox Live party chat and multiplayer systems.

Check to make sure the required Windows services are enabled:

Enter Services in the search field on your toolbar (Cortana).

Select Services from the search results.

In the Services application, check the Startup Type for the following services to ensure they are set to their default values:

IKE and AuthIP IPsec Keying Modules, Startup Type: Automatic (Trigger Start)

IP Helper, Startup Type: Automatic

Xbox Live Auth Manager, Startup Type: Manual

Xbox Live Networking Service, Startup Type: Manual

If any of the services have been altered from their default values, you can configure them back to their default values:

In the Services application, double-click the service name that has been altered.

In the Service properties window, select the Startup type drop-down list and select the default value for the service.

For example: If the service startup type’s default value is Automatic and the startup type has been changed to Disabled, you will need to change it back to Automatic, and then start the service. To start the service, under Service Status, select Start.

There are some applications that reconfigure PC settings in order to try to optimize PC performance. Some of these applications will disable Windows services as part of their optimization processes, and in doing so may reconfigure one or more of the four
services listed above to be disabled. If you use one of these PC optimization applications, make note of any service configuration changes it makes, as you may need to revert those settings in order to use Xbox Live party chat and multiplayer systems.

Solution 7: Teredo server name is set to an invalid value

In order for Teredo to function normally, it needs to be configured to use a valid Teredo server. If the Teredo client on your PC has been configured to use an invalid server name, it will need to be reconfigured to a valid Teredo server name to function
correctly.

Check to see what Teredo uses as a server name:

Right-click the Start icon, and then select Command Prompt (Admin).

To check the server name Teredo is using, run the following command from the Admin command prompt:

netsh interface Teredo show state

The default value for the server name parameter on Windows 10 is win10.ipv6.microsoft.com.

If a different value is displayed and Teredo is unable to obtain an IP address, you may need to revert the setting back to the default value. Run the following command in the Admin command prompt:

netsh interface Teredo set state servername=win10.ipv6.microsoft.com

I've been having this problem with Xbox Console Companion. Thanks for the help though.

it may be inconvenient but while things aren't working on your pc, if you do own a smart phone and you download the xbox app (not game pass, not anything weird, just the straight up xbox app, you should be able to communicate with your friends via the
app. I recommend using a headset instead of just talking over the mic. sorry i couldn't be of more help.