Party has been made in the screenshot and it's waiting for an open instanse. Back when the instance servers we're more limited and Amdapor Keep was popular, you could wait up to 20-30 mins for an open instance even if you had a full party or you had been matched by DF into a party. It's been a long time since I've seen that happen though since no particular instance is that popular anymore, and they've buffed the servers.

I've never seen DF break up premade parties into different instances.