Try running alsamixer and reduce the volume levels, sometimes too high values distort the audio.
Update: I managed to borrow a Rpi4b and everything worked perfectly using the USB audio. Now I am even more focused on trying to figure out why it crackles so badly when using a Pi3b.
Had the same problem, disabled the m8c-rpi4-module and that fixed the problem for me. For the autorun of m8c I wrote an easy script.
[My setup: rasp 3b+, teensy 4.1, patchbox 2022, rasp internal audio card and a 2.4A IN on the rasp]