Sound activated recording - audio cutting out

Audacity 2.1.3. Windows 10.
Recording audio from computer using Speaker loopback. Win WASAPI.
The recorded audio has parts of words cut out.
Adjusting sound activation level makes no differences.

Unticking sound activated recording does not disable it.

So the real complaint is that a sound recording from YouTube or other on-line content cuts out.

Scroll down to “Out Of Resources.” Anything in there?