Xbox One - Party/online chat has choppy audio, squawk noises, echo, or mic doesn't work

If you or other people in your party are complaining about strange squawk type noises, first try adjusting your "Headset Volume" in the Xbox Guide down one notch from maximum:

If your chat audio is choppy or your mic isn't working, this may be related to an Xbox One controller update or your Xbox One needs to be fully restarted.  To fix the issue, both you and the friend you're chatting with need to do the following:

Make sure your controller is up to date:

http://support.xbox.com/en-US/xbox-one/accessories/update-controller-for-stereo-headset-adapter

Xbox has some other great suggestions of things to try here:

https://support.xbox.com/en-US/xbox-one/console/troubleshoot-xbox-one-party-audio

Fully reboot your Xbox One:

Once the controller update is completed, turn off your Xbox One.  Once it has turned off, disconnect the AC adapter from the back of the Xbox One for at least 10 seconds.  

You can now reconnect the AC adapter and reboot the console.  Provided that both you and the person you're chatting with have done this, the noise should go away.