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

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