well you are on wrong tab. Recording is for MIC and not playback. Only a plugged in playback device like a MP3 Player. This is not what you are using so disable it.
select the playback tab>>select speakers>>Properties>>Enhancements
some of these will make echo sounds and such, disable them
maybe disable these.
Now back to your post. You are selecting record and not playback for headphones.
Your jack may be a dual MIC Headphone jack, like an ASUS laptop I have and when plugging in an app pops up to select when you want to do.
But you may need to disable the MIC or configure it anyways
select the recording as you have shown, then select the MIC not that stereo mix that is for recording and then select properties and configure your MIC like Disable it if need be
Now I believe that there is stereo mix in the playback settings also, I would like to see that. Set those for mixer in playback.
But back to MIC, the image you show to "listen to this device" in recording, stereo mix and mic, you need to disable it and I believe your issue will be gone.
and disable the MIC and MIXER enhancements for recording