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I would advise that you may need to restart your PC before it actually works. You may need to disable the Microphone and Headset that mentions Free AG.
If the moderators see this, please created a pinned post about the fix for this problem. It is a very common issue, shown by all the threads in this discussion and on other threads like reddit.
So in short: in Windows go to playback devices and then disable your headset in the Recording tab. For me at least, the sound immediately got back to normal quality while the game was busy in the background.
This is not a fix, it's a workaround. When you disable the headset device, it makes it so that Zoom and other VoIP won't pick up your mic audio from the headset, so this would only be considered a temporary workaround. Also, I had to disable the "headset" in Device Manager before it would work. Sound playback/recording wasn't enough.
If those steps don't work, proceed with the following:
Go to the Playback tab. Select Properties. Navigate to the Advanced tab. Uncheck Exclusive Mode.