TL;DR: Using an external USB sound “card” causes bad audio distortion and messes with other USB devices. No other game or software has this problem.
I’ve been fighting this for a year and a half: a laptop computer by itself plays ESO just fine. However, when connected to a large HDMI display, USB sound card and 5.1 speakers, and USB mouse and keyboard, it does not. When the game starts up the sound is good, but eventually it crackles so badly that speech can barely be understood. This is worse when there are a lot of other players about, as during festivals.
When it’s really bad, the keyboard and mouse misbehave with substantial lag. This is true even when I open a terminal window on another display and type to it. It appears that the entire USB stack is compromised. When I quit the game, the lag is still there and recedes slowly, taking many seconds to return to normal.
This problem occurs on laptops from two generations (Windows 10 and Windows 11). I tested two different USB sound cards with different drivers. I tried both a modern wireless mouse and an ancient wired one. No other game or audio source has ever caused this problem. (I’ve played through a lot of audio-intensive games including Oblivion, Skyrim, and Witcher 3.)
I have finally found a workaround: I remove the USB sound card and use an HDMI audio extractor on the cable to the external monitor, feeding the same 5.1 speakers. (The device is available from Amazon as dp/B071KXR3G2). All problems gone, and I can finally understand Isobel Veloise when she talks about how much she loves delves.
I’ve never seen this problem discussed here or elsewhere, so I post this for others who might encounter it.