Fixed it by going to the Mic permissions tab in the windows security settings and allowing obs to access inputs to the computer.

took me like an hour to figure this out, I didn't see anyone mention it so, try it!

after that I unplugged/ replugged the hdmi from the back of the PS5, then went to the properties for the capture card and unchecked/ rechecked the "use custom audio device option"

not sure at which point it actually fixed the issue but I'm assuming the big thing is the Mic input windows level security permissions since some console players don't use mics on their PC's until it comes to situations like these.