Audacity detects no sound

Audacity 3 Help Forum Windows
1

Here are my settings: https://imgur.com/yLsP0dX

I tried using different input device, but it didn’t help. Audacity picks no sound, neither microphone (I know it is muted on the screenshot), nor system sound.
I am on windows 10 with Audacity 2.3.3

Please help, I need to record something important.

2

Update: I somehow managed to get microphone working but system sound is not being recorded.

For the record, I am using a laptop and I tried both external and internal speakers (changing input device in Audacity accordingly)