Did some research and it seems like it's not even worth troubleshooting this problem as every one experiencing this have not found a solution.
Is anyone aware of a timeline that Larian may have given on a fix for this problem?
I kickstarted this on PC and a friend + I really enjoyed playing through it cooperatively. Now, I'm trying to play it in co-op on two xboxes in the same house with my girlfriend and nothing appears to be working whatsoever.
I would've loved to get into it today, but I'm happy to delay my adventure if I know a fix is in the works.