Sound Problems After Recent Update

I love this game and VR brings it to the next level. I recently purchased an Oculus Quest 2. Prior to the recent update, my sound was fine in game. I had video through the headset and audio/voip through my gaming headset for sound. Now, since the update, the sound comes through my Oculus Quest 2 external speakers and not my pc audio headset, but voip still comes through on the pc audio headset. Only in game sounds (music, sound effects, annoucners, etc) come through the quest 2. I double checked both windows and in game audio settings. Everything I can change to my Arctis 7 (audio headset) is set to this and yet, the game sounds still continue to come through the quest 2. Ive turned sound options to the quest 2 and then back to arctis 7 and its still not working. So unless I want to use the external sound on quest 2, and if i want to be able to talk to teammates via voip, i need to use the quest 2 for video, my arctis 7 headset for the microphone, and another audio headset plugged directly into quest 2 for better sound quality. 

I do not know what else I can check and the only change that occurred before this issue started was the recent update. The update fixed other things (like avatar outfits not being saved, etc) but now the sound is all out of whack. If I play in regular mode, the sound comes throught he arctis 7 as it should. But in VR it will not come through the arctis 7 no matter what game and windows settings are set to. 

UPDATE: I tried one more thing that I previously did not attempt. From within my Quest 2, I would typically load Squadrons straight into VR mode from the steam game library. When you click play it allows you to choose standard or VR. This time i tried loading game in standard mode (still in VR from virtual desktop). Game loads with Arctis 7 headset playing the game sounds. And I can see the game in the Quest 2 but in a flat screen mode. In Squadrons settings, I then went to VR settings and toggled VR on. The game immediately converted to using Quest 2 sound instead of Arctis 7. I toggled VR off and the audio returned to Arctis 7 immediately. All settings still indicate Arctis 7 as primary audio device in both in-game and windows settings.