Guitar filtered out using app

[Sunshine2024]

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!

[Sunshine2024]

I’ve tried this on my new Mac with apple silicon running latest OS, and I tried it on an old Mac running intel version of the app. In both cases, zoom app is squashing the guitar audio coming through the microphone but not the voice audio (singing).