Level and playing head to head

Hey I play on Xbox one. The original Xbox one. I don’t have the money to upgrade to a new console. I don’t know if this is the issue and it’s not running smooth. But I can’t play head to in mut. I can only do challenges. Also I have completed Al challenges already and I’m still stuck on level 2. None of my contacts moved up with my account. I don’t understand why this is happening. My buddy started the same day as me and bought the game after me and is having no issues.