Cubase Element 9.5 and Steinberg UR 242: cannot record


I have an issue recording with newly purchased Cubase Element 9.5 + external sound card UR 242.
Everything is well pluged and I even can even can see and hear that my guitar is playing through in my Audio channel (attached printscreen).

However when I try to record, no track appear on top of the track indicating that it is recording (princscreen 2).
I’m attaching as well a few image of my setup.

I would appreciate any advise to help me resolve this issue.