Yeah, I'm sorry. Even I am getting confused now.
As you can see I plugged in a headset with built-in mic that uses USB port (USB Audio Device Mono). This doesn't have the issue of desktop audio being picked up when I try to test my mic using Sound Recorder, Discord, etc.
The issue is with Family 17h (Models 10h-1fh) HD Audio Controller Analog Stereo which uses the front panel and motherboard audio jacks.