It is running HD Audio for front and back not AC'97. If it was using AC'97, I would be receiving no front audio, since the front connector for it is gone, and HD Audio is set in the UEFI for rear audio, so hence, both are using HD Audio and working properly. The 'Options' box for AC'97 allows the rear functionality as it should be, but it is overriden by HD Audio in the front panel anyhow because the AC'97 header has been...decapitated. It is running fully off the back I/O. Picking the AC'97 option was just to allow that, as it is bugged.
I saw it mentioned in some posts, dating back to Z87:
https://rog.asus.com/forum/showthread.php?36824-disappointed-with-MAXIMUS-VI-IMPACT-sound-card&p=361...See post #56.
It's odd that this oversight was never fixed. I even saw a post from a guy on a Maximus VIII Z170 board with the same issue(s). It works from the back this way. It only uses HD Audio as seen in the 'Options' setting. From the rear, it shouldn't even use it though. It's really all a glitch.
As said by that aforementioned post, apparently the rear I/O audio ports report headphones as a speaker, and thus disable the Amp and Impedance functionality. The solution is to enable AC'97 for front, which is overridden by HD Audio in both cases anyway.
Still, Asus should fix this as the solution is a bit ominous and many users might never be able to find it.