DISTORTED AUDIO

Hey!

I am on a serious issue here..

I'm using Windows 10, Reaper and a Line6 Pod UX2. I am getting this weird distorted/bitcrushed sound from Reaper. It does not matter which project I'm on, which FX are on, nor if I'm listening through the POD or from the computer. The overall audio is distorted.

The audio is fine from anywhere else. Diagnosing the signal chain, the reason is definitely in Reaper.
I have checked the internet for solution. Checked the drivers, reinstalled them, checked buffer size and shit, all is in the most optimal level possible.

Suggestion?

Thanks

DISTORTED AUDIO