Can't type in chat box

Hello,
whenever I open chat box (using "enter" key), the chat box opens but I am unable to type or do anything in game. Game does not freeze or anything. My keyboard works fine since I can "alt + tab" to do anything else outside of game. I am using PC version of the game. This is first time ever I encountered something like this. Figured it may be caused by mods so I started a fresh game with no mods and default settings. It did not change a thing. It also seems like chat box is not selected. Am I doing something wrong? Seems like it may have to do something with Xbox adaptations, kinda like click-selecting cargo but I see no way to select chat box?
Thank you in advance for help.