Guitar filtered out using app

Just downloaded latest zoom and the TEST MIC button filters out my acoustic guitar though my voice through the same mic is clear and good. The audio chain (mic, interface) is fine. I enabled original audio and high fidelity option. I set echo cancellation to low. I updated and restarted my Mac. I restarted zoom. I’ve googled a million answers but my settings mentioned above are correct. When I play guitar during TEST MIC, I see the zoom squashing the level bar. Zoom is clearly squashing my acoustic guitar. My guitar is in tune. 🙂 Any other ideas? Thanks!