Xbox Windows App Party Chat Not Working

Party chat on Windows/Xbox App still works. An alternative is the Xbox game bar Party.

To bring up the Xbox game bar, Hold the Windows button and Press "G"

From there you will be able to initiate a Party and Much more!

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

Same problem here. I've tried my Logitech wireless headset as well as a USB headset. Both work fine in Windows apps, but no mic on Xbox Streaming for game chat, voice messages, or parties. It does seem to work in the Xbox app Parties though.

I have the beta app v11.11.3013.

Try using the Xbox Console Companion App instead. You can use it in Windows and on your phone. It works great on your phone as a hands free party chat.

This is the official Xbox support article for this error: https://support.xbox.com/en-US/xbox-on-windows/social/troubleshoot-party-chat

There are a list of solutions in that article that must be attempted in order. At the end of a solution, test if party chat works or not in the Xbox app. If it doesn't work, move to the next solution. Follow the steps carefully, as it eventually gets into
editing the system registry files (which can break your Windows installation if done incorrectly).