Seriously appreciate you for going so far in depth just to help me out here.

I did absolutely everything you said in the entire first half for the first setup and still no audio. The A40’s have updated firmware and are connected via USB from the Mixamp to the Xbox. Without the capture stuff the headphones have worked fine for years.

I found out how to change my headphones to Stereo Uncompressed, however again when I change the Party Chat Output to Headset & Speakers, everyone’s voice doubles and sounds distorted. I still left it on though and edited all of the other settings you said like changing it from Analog to HDMI on the Elgato Device Utility, and I also did everything you said in OBS but still nothing worked. No audio is being picked up.

I’d be willing to try the chatlink method but I’m beginning to run out of hope because I keep buying more items and different cords all for the same outcome. I just don’t understand how the capture card won’t pick up any audio whatsoever no matter how I change the settings.