I am having a very similar issue and the suggested steps did not resolve this.
I updated Garageband on September 1, 2020 to the latest version and have had these problems as a result:
I have a Steinberg UR22mkII USB audio interface. I have installed the latest drivers available and my 2018 MacMini recognizes the URmk22II in settings and I can set it as default for audio input and output. I can play music/audio on the music App or through Safari/YouTube and the computer communicates it to the UR22mkII and then in turn to my JBL studio monitors - sounds as good as ever.
However, as soon as I open GarageBand, the computer forgets the UR22mkII. I cannot find it in Garageband to set as input or output anywhere. Furthermore, when I open the Mac general settings sound preferences it has disappeared and is no longer an option for input or output.
If I restart the computer, the UR22mkII is available as an input and output for sound again, but as soon as I open Garageband it disappears again.
On a possibly related note, since I updated Garageband, MainStage has stopped working. When I try to load a project it simply says "No document could be created. The file isn't in the correct format".
Help would be appreciated - maybe a way to uninstall the update?
Thanks.