Playback track gets distorted ONLY while dubbing a new track

I have been using Audacity for years and I love it. I hope someone can help with this issue that I now have. I can record the first track just fine. But when I start dubbing other tracks, the playback gets distorted ONLY while I am recording the new track. When I a finished and play all the tracks, everything sounds fine again. I can’t figure out why only the playback track gets distorted only while dubbing. Here’s a video that shows what I am talking about. And some pics of my settings.
And a video of the issue

Has this ever worked for you with the equipment that you are currently using?

Yes. As stated, I have been using Audacity for years. I don’t know what caused this. The last time I suddenly had recording issues, the only thing that fixed it was getting a new a computer.