XDJ RX not recognised as an input device so can't stream through BUTT without an external soundcard

I cannot connect my RX directly to my laptop with a USB cable - it appears as an output but not as an input. When I stream through BUTT I have to use an external sound card as the RX is also not recognised in BUTT settings. I am getting terrible random distortion that cannot be reduced with gain, trim or reducing the master. All levels are in the green on the sound card (M-Track Duo) and on the RX but the distortion remains and is random. I have replaced my mic as I had a grounding hum on that which is better now. 

Ultimately I would like the RX to be recognised and connected by USB without a soundcard as I am hoping that will help with distortion when streaming. I can record through BUTT and record via USB and directly from the RX beautifully, my issue is the streaming. I stream using a playlist on the USB, I don't use Rekordbox midi and laptop.

I have been trying to resolve this for a year (input connection issue). The distortion has been in the last 2 months). I have downloaded the latest driver and firmware for XDJ RX but am I missing something? Is there a USB driver specific? My laptop is a brand new OmniBook Ultra with an Intel Core Ultra 7 processor and 16Gb of RAM.

It is driving me crazy and appreciate anything you can do to help. Many thanks