The game appears to treat each player as a separate party.

Its a bit disappointing that there is a lack of connectivity when playing as a group.

For example in Single player Astarion threatens the party to back off and they say they need you alive or something but when there other players with you, nothing you just awkwardly roll around while you do nothing.

Similar to some NPCs Player 1 goes up talks to them goes through everything while Player 2 listens in, they end the dialogue then Player 2 talks to the NPC and they start all over again and repeat themselves.

It would be nice if there was at least an option to be treated more as group since we are playing as 1 party not 2 parties playing together. So far it seems like a lot of interactions that player 1 does is ignored for player 2.

Why cant "listening in" actually join in the conversation.

This is also awkward since player one essentially owns other characters in their group like Shadow heart. So I can see many interactions from my characters and group.

Im sill early on (but had 100 hours in early access) so this could get better or worse but it just feels like we aren't playing as a party I have 2 characters and my friend has two characters but we have little crossover or interaction. If he talks to a NPC clealy part of one of my characters storylines there's no way for me to join in. He has to end the conversation and I have to talk to them.