Chat still broken even after Mircosofts xbox one update.
Logged into a game last night and siome duche with 3 kids whinning and a baby crying with his Mic on. Muted everyone on my team and could still hear him. There was no indication with the mic symbol on who it was. Had to quit to find a different game.
It was probably someone on the other team. I had the same problem, and even though you can't see the mics of the other team, I went through and muted everyone and the noise finally stopped after I muted one of them.