Proximity chat suddenly not working on Xbox

When I first started playing, I had no issues with proximity chat, I could hear people fun and they could hear me.

I since started playing with a friend and since then it’s stopped working.

All my settings are fine, I’m not accidentally in an Xbox party, and I’m even getting the animations whilst talking….but still I can’t hear anyone and they can’t hear me.

Any suggestions? It’s strange that it’s only come on suddenly a week or so ago when plying anything more than solos.