UR44 Recording Desktop Audio

Cubase LE AI Elements 10.5
Steinberg UR44 Audio Interface
Monitoring line 1 and 2 in Cubase show playback from my desktop audio. Recording a track from either channel will record desktop audio. Nothing is plugged into these inputs. All that’s plugged to the interface is the power supply, USB 2.0 connection to the PC, and headphones in Phones 1. Adjusting the knobs for these channels does not affect the audio being recorded.
What gives?

Loopback is turned on?

Wow, that was it, thank you.