This is a generic message it needs permission to use your audio in order for your opponent to hear you only if you consent of course
EDIT: To be clear, Wands has it's own in-game audio system. I've been playing this game for over a year. This is the first time this message has come up.
No. This isn't in the game Wands, it is before Wands even launches (I work as a tester for Wands and the developers say this has nothing to do with them at all.) According to Oculus Support, who finally got back to me, it's a message that shouldn't appear and is related to having the Party Audio still on in Oculus Rooms when trying to use the audio elsewhere, so they suggested to go into Oculus Rooms and "leave the party"... except, I don't even have Oculus Rooms installed! When I told them this, they were baffled and said it must be a bug, and to just do a "Factory Reset". That was something I was trying to avoid, and luckily after a few days, the message finally went away on its own without me having to do anything.