Problems with chat audio

Is anyone else having a problem hearing chat audio?

I can't seem to hear any of my friends in party chat. I can see that they are talking by the green circle lighting up, but I can hear no chat audio.

I bought a headset adapter a week or so ago, and am using this adapter to connect my Sennheiser PC360 headset to the controller. My buddy bought his X1 a few days later and I could hear him just fine throughout the entire first playing session with him. However, since then I have not been able to hear him in party chat. He says he can hear me loud and clear. I gave him my X1 chat headset to test whether or not it was a hardware issue with his. It worked for about five minutes and then the same issue occurred. He had done a hard reset of the system prior to trying out my loaner chat headset, so I'm assuming that's what temporarily fixed it.

I can't hear my other frequent gaming buddy in party chat either. I don't know if it's an issue on my end or on their end, since he uses the standard chat headset that comes with the system as well.

Is anyone else experiencing this problem?