Thanks for the screenshot. It looks like the call is in voicemail mode, so the 
keypad and mute button are intentionally disabled.
There is a bug in telephony-service that could set conferences as voicemail 
calls when the voicemail number isn't provided by the sim card, which explains 
the problem.

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https://bugs.launchpad.net/bugs/1398431

Title:
  Can't mute a conference call

Status in the base for Ubuntu mobile products:
  Confirmed
Status in Telephony Service:
  New
Status in telephony-service package in Ubuntu:
  Confirmed
Status in telephony-service package in Ubuntu RTM:
  New

Bug description:
  [Procedures]
  1.make a conference call
  2.in calling interface click the mute button

  [Expect results]
  the conference call will be mute
  [Actual results]
  the mute button does not respond and audio is still heard by others on the 
call

  [Reproduce]
  Always

To manage notifications about this bug go to:
https://bugs.launchpad.net/canonical-devices-system-image/+bug/1398431/+subscriptions

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