[2023] Game chat doesn’t seem to work

I suspect it’s the result of a privacy option as you say. You can access this menu using the instructions below:

[PC] Microsoft Store

1. Open the Xbox App
2. Click on your username
3. Click ‘Settings’
4. On the ‘Account’ page, scroll down to ‘Privacy Settings’
5. Click the ‘Manage’ button on the right-hand side

• This will open a new browser tab, and instruct you to login

6. Log in if/when prompted
7. Select the ‘Xbox Series X|S, Xbox One, and Windows 10 devices Online Safety’ tab in the centre of the page

Xbox

1. Open the Guide Menu by pressing the Xbox button on your controller
2. Navigate to the ‘Profile & system’ tab
3. Select ‘Settings’
4. Navigate to ‘Account’
5. Select ‘Privacy & online safety’
6. Select ‘Xbox privacy’
7. Select ‘View details & customise’
8. Select ‘Communication & multiplayer’