After quiet some time hunting down the issue. I think I solved it. Looks like there are some sort of driver conflicts.
Two driver files audioendpoint.inf and c_swdevice.inf have the same versions (10.0.19041.1) but DIFFERENT driver dates. The first one has 12/06/2019 while the second one has 06/21/2006. Is this even possible?
After uninstalling and scanning for hardware change in Device Manager, I got a warning in Event Log:
Device SWD\MMDEVAPI\{0.0.0.00000000}.{ba8a4a41-2189-412a-81a6-d027431da88e} was not migrated due to partial or ambiguous match.
Last Device Instance Id: SWD\MMDEVAPI\{0.0.0.00000000}.{02e8c993-5c78-44f7-ae00-bf167db655a8}
Class Guid: {c166523c-fe0c-4a94-a586-f1a80cfbbf3e}
Location Path:
Migration Rank: 0xF00000000000F120
Present: false
Status: 0xC0000719
After which the following log:
Device SWD\MMDEVAPI\{0.0.0.00000000}.{ba8a4a41-2189-412a-81a6-d027431da88e} was configured.
Driver Name: audioendpoint.inf
Class Guid: {c166523c-fe0c-4a94-a586-f1a80cfbbf3e}
Driver Date: 12/06/2019
Driver Version: 10.0.19041.1
Driver Provider: Microsoft
Driver Section: NO_DRV
Driver Rank: 0xFF0000
Matching Device Id: MMDEVAPI\AudioEndpoints
Outranked Drivers: c_swdevice.inf:SWD\GenericRaw:00FF3001
Device Updated: false
Parent Device: HDAUDIO\FUNC_01&VEN_10EC&DEV_0887&SUBSYS_104386C7&REV_1003\5&319e220&1&0001
Hence as of now audioendpoint.inf is loaded and the sound issue is fixed