how do you mute peoples in online lobbies ?
There’s a mute all on the first page of a lobby (can’t tell you exactly where it is) or press right, right to get to the driver list, select the person you want to mute and press A, then mute player. I do wish there was a hotkey in a race to mute all players.
If you find you generally want to mute players go to your Xbox Settings. Under Privacy settings you can set it to only allow voice communication with people on your friend list.
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Start a Party and go into Party Chat instead of Game Chat if you don’t want to hear anyone.
To mute a single player:
https://support.xbox.com/en-US/xbox-one/xbox-live/block-or-mute-other-player