UR22mkII - Hi-Z guitar issues

So I’ve been running an electric guitar through my UR22mkII with Ableton and a neuralDSP amp sim, I’ve never been quite satisfied with the tones I’ve been getting but have recently realised I was using input 1 which has no Hi-Z…

I understand I should be using input 2 with Hi-Z turned on right? But for some reason when I do that I get no sound/ or an extremely quiet, distorted, muffled signal if I turn the input gain up really high.

The guitar has passive pickups although I think that shouldn’t make a difference right? Strangely it doesn’t sound too bad without the use of Hi-Z but I have had this sense that things are a bit muffled/unclear, which is likely clipping.

Any idea what’s going on here?