Separate microphone input from the lobby
The developer describes proximity voice chat. Test close to another participant, and distinguish “I cannot hear them” from “they cannot hear me.” A Discord call working only proves that Discord can use the device.
The original microphone thread reports correct input selection and voice enabled, yet no game audio from the microphone. Its author later reports a hosting/menu workaround, showing why the session should be checked after the device.
Sources: Official Steam listing · Microphone report and follow-up
Check Windows input, permissions and game mute
Test the intended Windows input
On Windows 11, open Settings → System → Sound → Input. Select the microphone, start its test, speak normally, stop and play the sample. Check the headset’s physical mute if the sample is silent.
Check the microphone permission
Open Settings → Privacy & security → Microphone. Enable access for the app you intend to use; desktop applications also need the desktop-app access switch. Microsoft documents a different Privacy menu path for Windows 10.
Check the game mute binding
Volx records
Mas Toggle Mute Mic on the PC keyboard setup. Inspect your current bindings and the visible mute state before assuming that the recorded default still applies.Return from console suspension
The September update explicitly pauses Xbox voice chat while suspended. Resume the game and retest the session after returning.

Sources: Microsoft: microphone problems · Volx: photographed input settings · September 21 official update
Confirm a two-way test
Have the nearby participant confirm whether they hear your voice. Swap speaker and listener, then move apart to distinguish input failure from proximity or session behaviour. Keep the microphone test result and your game mute state with the report.
If voice failure accompanies a pulsing HUD connection indicator or failed invitations, continue with the connection checks. The controls table records the input bindings separately.
Sources: Microphone report and follow-up · September 21 official update