There have been technical issues across platforms, the latest being that custom lobbies have been disabled.
Other platforms also had issues like showing PlayStation button prompts when playing on Xbox, and matchmaking issues have effected all players.
Hopefully these issues are resolved soon, as at the time of writing the issues still persist, including much longer than normal matchmaking times.
The transition into a free to play model across all platforms was one that made perfect sense for a game like Fall Guys, one that strives to be accessible to all players, and is at its best when there are enough players to fill each lobby.
Source – [Twitter]