Overdub delay issue

New To Audacity. Using Version 3.7.1 on MacOs 14.5

Running a Focusrite Scarlet 2i2 via USB C.

I did the ‘Rhythm Track’ and found my latency which was 356.

However, when I want to record a new track in time with the rhythm track, my live playing is very delayed back to the headphones. I entered the latency to -356. Also tried 0, as well as +356.

What can I do to hear the rhythm track and my live playing at the same time?