Audio quality is coming out terrible

I was trying to record audio from my desktop to get a YouTube video’s audio, this is my first time doing this. I followed a tutorial and it was recording my desktop audio and only my desktop audio. When I try recording audio from a video, it comes out really terrible and distorted. How do I fix this? I’m on Windowsthe trash audio in question

Turn OFF Audible Input Monitoring. It creates an internal feedback loop when you are recording to what you’re listening to and then listening to what you’ve just recorded and recording it again.

I checked my preferences but was already off. I have never turned this setting on.
Edit: If i try to record with this on I get this

What is the selected Recording Device in Audio Setup?