To clear some things up, while I can hear my microphone and it shows that it recognizes sound when "Listen to this device" is active, it doesn't work in example discord, I will add a video below where I show this off.
In the video I'm always making a noise, so even when "Listen to this device" is disabled I am still making sounds. Also, the sound you can hear is not directly from the microphone, however it the desktop sound that is coming from the mic.