No audio on calls after plugging in USB Microphone

Hi, I have a weird issue here, hope you guys can help.

In my setup I am using a Sennheiser bluetooth headset as headphones combined with a Sudotack USB Microphone. I've been using this setup for probably over 6 months in my Surface Pro 7 (Windows 10) with no issues.

I setup a desktop PC (Windows 11) and when trying to make Teams calls people can hear me, but I can't hear anyone.

Things I have tried:

• Removing/re-pair devices
• Checked windows updates/driver updates
• Made test calls, not very helpful as I can't hear anything, so I created a simple meeting and recorded the meeting, just to confirm that my Microphone works fine
• My headset works perfectly outside the meeting, I can listen to music / youtube / etc
• When I switch settings to use Headset (input and output) - works fine
• When switching back the input to use my USB Microphone, the output stops working

There is no issues with the devices itself, as when I switch back to my Surface (Windows 10) it all works as expected.

Is this a Windows 11 compatibility issue? Or what am I missing?

thanks in advance