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I am trying to start a game with some friends and whenever I try to turn on direct connect it keeps saying "changing direct connect settings failed."

My firewall is not blocking it.
Hi, I have the same problem. At Steam Larian wrote that they had issues resolving the high amount of players in multiplayer so they turned down a server and, as far as I understood his notice, because of that direct connect is not working.

Hope they fix this as soon as possible... it is weekend afterall.
Same problem here, can't connect with my friends on steam, every time we 've tried the game failed to direct connectivity and same in LAN, hope will be fix soon.
You can use direct connect with a IP address instead of server's auto-generated code. If wanna play with your friends, just ask host for his IP address.
I just verified game files in GOG and it worked after that.