Can't see chat

Was playing with a friend of mine and we realized that he wasn't able to see chat bubbles or the chat log for nearby chat at all. Party chat was fine, could see symbol arts fine, but could not see chat from any other nearby players (for example, we were at a concert and everyone was shouting "Encore!" He couldn't see any of those messages at all, despite being on the "display all" tab.) Any idea why this could be happening and how we could fix it?

If chat works fine in the party, it might be the Privacy settings on the XBOX account.