The screen that appears when clicking the option to enable the friends list mentions that the friends list controls who the player can chat with depending on an Xbox option it refers to as “Can communicate outside Xbox.” As per the resolution of MC-308110, Xbox options that pertain to communication outside Xbox do not apply to Minecraft, as it’s part of the Xbox system.
How to reproduce:
In the Options menu, click on “Online…”
If the friends list is enabled, disable it.
Click on the “Friends List” option again.
Read the prompt that appears.
-> ❌ The prompt mentions an option called “Can communicate outside Xbox.”
Expected result:
The game would not mention that chat is controlled by an option that doesn’t actually control it.
Observed result:
The game mentions that an Xbox option that has no effect on the chat controls the chat.
Can confirm.