I'm on Windows 10 and having the same issue. I uninstalled the KB5014699 update successfully, and was able to use the Hidden Windows Update tool to hide the update. This solved the immediate issue of getting the error described in the original post, but the computer is still not detecting any input from the microphone. I checked that the microphone input level is set to 100% (which it is) and I am still getting no input detected.
While the computer was restarting after removing the KB5014699 update, it installed a new update. When checking to make sure the KB5014699 update was successfully uninstalled, I noticed a new update (KB5013942) that has just appeared. Both updates were described as Security Updates for Microsoft Windows, leading me to believe the new update may be causing the same problem. But when I try to uninstall this update KB5013942, I get an error saying "An error has occurred. Not all of the updates were successfully uninstalled". I cannot figure out what else could be the problem, and I can't get this update to uninstall.
I would greatly appreciate any help with getting this solved.