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Whenever I turn on the party/team voice chat, the in-game sound gets muffled. How do I fix this?

Hmmmm, that’s a good question

That's a curious one. Never heard it before

You should try contacting Riot Support: https://support-valorant.riotgames.com/hc/en-us/requests/new

sometimes certain earbuds sound quality goes down a lot when you use it for input and output. are you using like airpods or something. try using a different input or a different output if you have them available and see if it fixes anything