Echo while adding audio to software

Hello,
I have been searching internet for weeks now and I cannot find anything that would help me solve this problem.

Whenever I try to record something using any software that is installed on windows 10 I get an echo that I cannot get rid of.

And now it gets complicated - when I use any cloud based online recording software in my browser it works just fine, there is no echo.
Then I download it to my computer as mp3 file and when I play it using Groove Music software it works just fine, I sent that mp3 file to my other devices and it works just fine, no echo. But when I add that audio file to Audacity or any other editing software where you can also record your own voice I get an awful echo.

It does not matter if I use headphones, speakers or turn audio output devices completely.

I feel like I’ve tried every single thing to solve it - drivers update, used different microphone, etc

I would really appreciate if someone would help me, at this point, after 2 weeks of reaserch and trying to fix it I do not have a slightest idea what might fix this issue

Ensure that “Software Playthrough” is not enabled (“Transport menu > Transport options”)

Thank you for your response Steve,

It is not enabled, I already experimented with most settings in audacity, I think there must be something wrong with windows not audacity software itself as I get this kind of echo in every other software for example hitfilm, cartoon animator 4 or OpenShot Video Editor

In order to explain it better I just recorded a video that shows the problem that Im facing.

To clarify, while playing audio from Firefox and Groove Music I hear no echo but when I play it using any other software like Windows media player or Audacity etc I get a massive echo. Unfortunately software that records my screen added additional echo on top of audio that was claer and one with echo problem.

https://youtu.be/DvMWouAPRLo

The fact that it’s also happening with Windows Media Player suggests to me that it may be a Windows, or sound card effect.
Some sound cards have their own control panel. Others just use Windows Sound control panel.
A fairly recent Windows update gives additional settings (see: https://www.youtube.com/watch?v=jrEVMfLfR9o)