I finally found the issue. I was pretty sure whatever the problem was had to do with recent drivers or a windows update. So in Windows update I looked for he last installed item before I posted here about the issue. What I’m found was a program called Nahimic Media which was part of some Asus/Realtek drivers I grabbed from their site.
Turns out, this software is basically a virus and replicates itself in other programs and ends up causing major issues including the issue I was having in BMS, namely “cannot create dsound”.
I tried disabling it in services but no joy. I ended up having to reformat the the computer and start from scratch. As of today I’m flying Falcon again. From my understanding Nahimic is included in a lot of official drivers so beware.
Thanks for all the help!
Reddit article about Nahimic… https://www.reddit.com/r/MSI_Gaming/comments/ilys2o/nahimic_is_literal_malware_no_matter_how_you/