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Awful sound quality on Maximus X Hero WiFi AC

Level 7
Hello, I have trouble setting up my audio properly, loud explosions in games like CS:GO result in an abhorrent bass boost with crackling sound. Audio in music videos is also bass boosted and generally absolutely awful.
I am using a Maximus X Hero WiFi AC, I have installed

Sonic Studio 3 version
Realtek drivers version 6.0.8746.1

I am using

Windows 10, latest build 21H2,

but it was the same with 20H2. My audio device is Razer Thresher 7.1. Wireless headset which I have plugged via USB AND SPDIF from the usb dongle to the spdif port. I am all out of ideas, checked all the possible settings but couldn't find anything to alleviate the problem. I did remember that in previous versions of Windows 10 I had a similar problem but somehow managed to adjust it, but that was years ago and I have reinstalled my Windows since then, so I do not keep older drivers nor I do know the versions that work. Any ideas what I can do to fix this? Thanks.

Level 12
get rid of sonic studio 3 and see if the issue is gone.