So this is a common issue.
Error code 0x807d0106 occurs if:
1) Windows Firewall is DISABLED.
2) Windows Defender is ENABLED.
Windows Firewall is a bit deplorable and I hate having it run for any reason.
Windows Defender, while not functionally as useful as when it first came out is still relevant-ish.
Can someone from Microsoft please describe how to allow Xbox Party Chat to work without conditions 1 and 2 needing to be met?