Hey, I have had the same issue starting a couple days ago. Everything Sounds Distorted/Echo/Interference.
This started a couple days ago after the update on Microsoft store. Otherwise it has been good for months and without it I was almost ready to return my Logitech G Pro headphones back. I mostly play CSGO.
I tried to reset, uninstall(restart and reinstall) DTS Sound Unbound, all the different settings, Logitech app settings, In game settings, etc. Only way is to get basic audio is without Spatial Sound OFF. DTS Headphone:X is not working the way it should.
I hope they fix it soon, I sent a msg on twitter and email to them, no reply. My guess is they know by now.