Glitching tracks on playback and recording to a playing track

I don’t know in which update this began, as I have had many updates since the last time I tried recording to a playing backtrack. I thought it was just when recording, but it’s doing it on just playback as well.

Im recording my guitar from a fender mustang usb output into the Aux recording option. This has worked for years until I tried to use it again recently. All other settings have remained the same for me.

Anyone know what this is? is it a bug introduced at some specific update? if so, how far back do I need to revert to overcome this issue?