2-mic/channel recording using ZoomH1n as an audio interface not working

I am using a Zoom H1N with a splitter and 2 external mics. It records the two mics on separate channels (L/R). When I drop the audio file on Audacity, the two channels show the signals coming from the 2 mics separately. No problems here.

However, when I use the Zoom recorder as an audio interface, Audacity only records a stereo track that contains the same signal on the L/R channels. I.e., not as two separate mic signals as in the case above.

Is this a problem with the Zoom recorder or Audacity? Is it actually possible for Audacity to record two mic signals on separate channels using this Zoom recorder in audio interface mode?

Thank you!