No signal playback on garageband microphone track

I recently bought the Focusrite Scarlett Solo (4th Generation). I am currently connecting it to MacBook Air, running on 14.6 OS. I have connected the interface with C to C USB cable directly to the computer's USB-C port (I had the same problem using the USB-A to C cable that came with the package).

System settings show the sound output and input are both selected as the "Scarlett Solo 4th Gen". And there is registered input signal, output signal however doesn't register.

In Garageband, when creating a new project, I create a new track and deselect "I want to hear instrument play as I record".

In Garageband, under preferences in the audio/midi section, both "Scarlett Solo 4th Gen." is selected as the input and output device.

In Garageband, in the track "Recording Settings", Input is selected as Input 1 "Scarlett Solo 4th Gen." and the monitoring is turned on. I hear sound picked up by the Scarlett Solo as the halo on the input 2 knob lights up to good level dB. However there is no sound that is picked up in Garageband.

I have toggled through the available outputs, switched out cables, switched out microphones that utilize phantom power and microphones that don't, and I don't get ANY signal picked up in Garageband.

As was suggested, the isolation mode was switched off on the yellow microphone icon with the latest OS update. Still no sound being picked up.

I would like some help, perhaps I have set up something wrong?