I'm on the latest stable Xbox release.

VOIP audio seems to be mono and not come from any direction. All other sounds function normally to my knowledge, turning to face the sound of gunshots to locate their origin and scanning back and forth you can clearly hear the audio switch between left and right channels. In-game voice chat sounds like it's inside your head with no directionality. There also seems to be an issue with the volume varying with distance, though this was harder to verify with the players I encountered, volume seemed to be maxed out until you were nearly too far to hear, then volume dropped from 100% to inaudible within a difference of ~5 meters.

I am returning after not playing for around a year but I don't remember this issue when I played before, and have played on PC with fantastic directionality and volume-proximity relationship.

I think interacting with strangers via VOIP is a critical part of the DayZ experience in many ways, some of which are gimped by a lack of functional directionality and volume. I was pleasantly surprised to encounter a lot of players using in-game VOIP to communicate when I played yesterday which was not my experience before taking a break from the game. I hope this issue can be resolved in a hotfix and is just a bug related to the frostline update