Three potential directions.
Solution 3- Focus on ease of use
Addressing the concerns with Solution 2, this approach focused on distributing relevant functionalities between the matchmaking screen and the Party tab while keeping them connected.
This meant that Room features are managed on the matchmaking screen, but parties can be created from both places.

Makes it easier for the users to create parties using two options

Reduces clutter in the Friends bar by moving room functionalities to the matchmaking screen