iMac 2021 Monterey-Can't play or record MP3s

Hi I have a new 2021 iMac (Monterey) and am using Audacity 3.0.5. I can not record or playback. The Audacity system preferences show my mic and headphones for the Scarlet Focusrite interface. If I drag an MP3 audio file into Audacity, it shows up but once I press play, I get this message. What am I doing wrong? Thanks in advance for any help. Ed : )
Audacity error message 2022-01-03 at 8.42.12 PM.png

Ensure that Audacity has permission to access the recording device (See:

Thanks Steve-That did the trick!

I recorded before after the suggestion to go into settings and privacy then give permission to Audacity to use the mic. Now when I try recording, listening to or importing an audio file I get this error message BUT I can change the tempo of that audio file that I can’t play. Any suggestions how I can get back to easily recording, playing and importing/dragging an MP3 file into Audacity? Thanks! Ed : )
Screen Shot 2022-01-11 at 2.58.57 PM.jpg

Try changing the playback device to internal speakers.
– Bill

Hi Bill.I’ll try that. Thanks!