Can't Record

I am having an issue with my set-up that is the following:
When I play a song from N that I made, the “Record” VU meter is reading the sound from the playback. As well as the playback meter.
I also can’t get the microphones to enter any sound.

I’ve tried several things but no luck.
Any suggestions?
At this point I can’t use N at all.

It’s as if N is reading the music “interanlly” and showing on the recording meter.

Thank you!