Additional chat-related features and issues within Microsoft Teams for business
Dear Stephen,
According to your description, I understand how important it can be to quickly identify contacts at a glance, especially when profile pictures, initials, and presence indicators are part of your daily workflow in Microsoft Teams.
After reviewing the available information, I found that this behavior is currently by design. When a chat is muted, Microsoft Teams replaces the usual presence/status indicator with a mute icon to indicate that notifications for that conversation have been suppressed. At this time, there is no available setting or configuration that allows Teams to display the user's profile picture/initials and presence status alongside the mute indicator.
I appreciate that this may not be the experience you were expecting, and I understand how the loss of these visual identifiers can make it more difficult to distinguish conversations quickly.
In this case, I encourage you to submit feedback directly through Teams by selecting Settings and more (...) > Feedback > Suggest a feature. Feedback submitted through this channel is reviewed by the Teams product team and helps influence future product enhancements.
Your feedback has been duly noted and is highly valued, as it provides with essential insights to continue improving and refining the products and services in the future.
Please notice and accept my apologies that as moderators in the community, we are not supported for the product design and have limited resources for the advanced info for Microsoft products. To help you send your feedback and requirement to the related development team, we have redirected you to the correct path.
Thank you for your understanding. Please let me know if you have any additional questions or if there is anything else I can assist you with.