Well, I just fixed one issue and with a sigh of relief started recording only to stumble upon another. 
When I play back a recorded audio track, I see that the playhead starts a few ms after the sound, causing a visual lag. i.e. I can hear the waveform before seeing the playhead go through it.
Observations:
- Happens only on newly recorded audio material. On portions of the project with existing audio tracks it plays back fine.
- During this portion there’s no other track. It’s only this audio track. This lag is not present in any other portion of the project (there is a stop lag though, where the sound continues for a few ms after the playhead has stopped but that doesn’t bother me much).
My audio buffer is set to 128 samples, so the delay can’t be this huge. It’s literally a beat behind. Please help!