... >https://manual.audacityteam.org/man/tutorial_recording_computer_playback_on_windows.html[end quoted excerpt]
...
Windows WASAPI loopback recording
Tip This is the recommended method of recording audio playing on the >computer on Windows with Audacity.
On Windows, you can choose the Windows WASAPI Audio Host and then the >(loopback) input in the Recording Device box. Choose the loopback input
for the computer playback device you will be listening to (for example, >"Speakers (loopback)". The loopback input records computer playback even
if your sound device lacks its own stereo mix or similar input.
WASAPI loopback has a big advantage over stereo mix or similar inputs >provided by the audio interface. The capture is entirely digital (rather
than converting to analog for playback, then back to digital when Audacity >receives it).
Advice Windows WASAPI host only records loopback when there is an active
signal present. When there is no active signal, recording pauses and will >restart once an active signal resumes.
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