Echo while adding audio to software

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.

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: