Since the latest few beta updates, Chatbox visibility has been merged into Earmuff Mode.
While I think dynamically hiding or changing the opacity of Chatboxes based on distance is a great idea, I think this should be completely separated from Earmuff Mode, or at least have an option to disable Chatbox hiding.
The main purpose of Earmuff Mode is to reduce the volume of other users around you when they are outside the hearing radius. However, many people in VRChat are mute players, including myself as a part-time mute.
I use Earmuff Mode in crowded instances because I don't want to hear so many voices around me. However, I also talk with a lot of mute friends, and sometimes they are outside my hearing radius. Because of the current behavior, I can no longer read their Chatboxes at all.
This forces me, as an end user, to disable Earmuff Mode completely, which defeats the entire purpose of a feature that I and many other users rely on every day.
What I would expect:
A:
Separate Chatbox visibility from Earmuff Mode and give it its own dynamic Chatbox visibility section.
If that is too much work:
B:
Add at least a toggle or slider for the Chatbox visibility falloff, including an option to completely disable Chatbox hiding when Earmuff Mode is enabled.