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I have bought headphones WH-1000XM5 an it it picks up all the background noise during Microsoft Teams New calls, so the people in the meeting can hear my colleagues. I am disappointed and considering to return them, as this is my main use for them.
User David A Land has narrowed the problem to only Teams New (not Teams classic). Other headphones work fine in Teams New.
You can find that dozens of people are reporting to experience the same issue through Reddit and Microsoft communities:
I am having the same issue and tons of people are complaining about this online. The headphones are advertised as background noise cancelling with multiples microphones. Please resolve this.
Hey, background noise-cancelling is for user of the headset, not for the other party hearing your voice.
If the issue is there with Teams New only, and Teams classic is working fine, then it seems that it's a software optimization issue from Microsoft side. I'd suggest that you contact their support team about it.
Well this is not how the XM5 are advertised.