An update: i was testing this again and I think the issue has to do with whether or not I am logged into Keychat using my nsec or using Amber signing extension. When I am directly logged in using my nsec, group chat invites I send out work as expected but when I am logged in using Amber, I run into issues sending group chat invites.

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Thank you for the feedback. We have fixed this issue, and the new version will be released next week.