Trying to use sound flower to record Internal Audio on Catalina, But I'm just getting a flatline. What should I do?

What should I do? is it because I updated to Catalina?

Yes.

Catalina carefully peeled off all older 32-bit apps as they were warning it was going to do. If it’s critical that your older software keep running, you could roll back to the earlier Mojave, still, as far as I know, still supported.

Also see:

Koz