In a full party of 6 we attempt to join a lobby and find one with 3 players outside of our party. So at this point I use the mute all except party and it appears to work fine. After the game decides to search for more players, we merge into a new lobby but all of my party members are muted along with three players who were originally in the lobby with us. The new people who we merged with are not muted and should not be. The three people who were in the original lobby with my party should be the only people muted at this point.