You cannot adjust the correct settings from the settings menu.
The platform you are playing on may have additional communication features that must be restricted separately.
Sometimes, parties may not work properly in Xbox Live due to server issues.
Recently, there were some reports of issues related to the voice chat feature of Fortnite.
Set a unique six-digit PIN.
Then you can run Fortnite to check if your problem has been solved.
Related How to Fix Fortnite Voice Chat Not Working PS4? Originally posted by :I downloaded but not installed the drivers yet, I will validate the game files now.