2.0.4 Can't Record using WASAPI

If I select WASAPI, the microphone option, instead of showing the microphone in the drop-down, shows “Earphones (loopback)” and doesn’t record. Directsound allows me to record as before in version 2.0.3.
Any ideas?

Use Direct Sound?

The WASAPI implementation is currently only for recording computer playback, as described in the Release Notes: Missing features - Audacity Support .

You can use MME or Windows DirectSound as before, or you can try Windows WDM-KS (see the link above for details).