“Cannot progress due to party’s campaign state”

Platform: Xbox Series X/S
Character Name: Lady
Region: Texas/Central
Game Mode: Seasonal Realm
Quest Affected: Crater of Lost Souls/ Deeds of a champion
Issue Category: Quest Progression / Campaign State Desync

I am unable to progress the Crater of Lost Souls quest in Diablo 4. Despite not being in a party, I receive the following message whenever I try to advance:

“Cannot progress due to party’s campaign state”

This occurs even when I:

Leave and re-enter the quest area

Restart the game

Fully quit the game and relaunch from the dashboard

Teleport out and back in via waypoints

Change characters and return

Attempt to use the Social menu (there is no party to leave)

The issue persists across multiple relogs, and I’ve confirmed I’m not in a party and haven’t played with others during this quest progression. I’ve also completed the “Undercity – Spirit Brazier Tribute” unlock multiple times, and it seems to repeatedly reset or re-trigger.

This appears to be a bug with the quest progression state or an incorrectly flagged phantom party status.

Steps to Reproduce (What I Did):

Progress through the seasonal questline until Crater of Lost Souls.

Interact with the quest zone to advance.

Receive the error: “Cannot progress due to party’s campaign state”

Verify I am not in a party.

Attempted all standard workarounds — none worked.