I finally discovered that you can disable the toggle on PC and the changes will apply on Xbox. On PC there’s a blank toggle at the bottom of Settings > Social. It’s hard to tell if the toggle is on or off, so try just clicking it once and see if it fixed it on console. If not, go back on PC to click the toggle again.
Note that I have a non-gaming PC with a basic CPU with integrated graphics and no DLCs purchased, but you don’t need anything fancy to run D2 on any PC.