I recently updated to OS Sierra. I have Audacity 2.1.2 and Soundflower 2.02b (downloaded pkg from link on Audacity site).
I am getting the following message from Audacity when I attempt to record streaming music: Error while opening sound device. Please check the recording device setting and the project sample rate.
iMac System Preference for Sound is set on Soundflower 2 Ch for input, built-in speakers for output. Audacity tool bar set Soundflower 2ch input (stereo channel recording), bult-in output.
Somehow, the System Preference Sound output had reverted to headphones. My iMac was at the Genius Bar on Wendesday for a diagonostic and apparently some defaults were reset.
I apologize for any inconvenience this post my have caused.