I was fighting the Duergar at the docks for the Myconids. I cast Tasha's Hideous Laughter on Novice Garmor and succeeded. The conditions he had on him were, Enlarged / Hideous Laughter / Threatened. When hovering over Hideous Laughter it says "All attacks made withing 10ft of the creature have Advantage against it."
Using Astarion, I tried to backstab him. However, it would not let me and had the red text saying "You must have Advantage to use this ability".
Am I missing something here or is this just bugged?
Yeah, this is a bug that's been brought up before. Prone does not currently give rogues advantage for sneak attacks when it should. Hideous laughter forces enemies prone. It does still proc an immediate critical hit when the effected target is hit in melee range. If you want to use sneak attack though you need to acquire advantage on the target through another means until it's fixed.