Here's the fix for the mic issue.

1. Go to Control Panel
2. Click Hardware and Sound
3. Click Sound
4. Click Recording Tab
5. Double click on Microphone Array
6. Got to Advanced Tab
7. Uncheck "Enable Audio Enhancement"
8. Select Apply

Repeat steps 5-8 for all the recording devices if using external devices. 

This resolved the mic issue for both integrated and external.