Multi Output Device not showing up in recording applications

I wanted to record my screen along with the audio output so I came to know by installing applications like Soundflower or BlackHole and creating multi-output devices with them, I will be able to record the desktop audio. However, no the multi-output device does not show up in any recording application. I tried both Quicktime and OBS and none of them would show my multi-output device as an input device. Even a multi-output device without Soundflower or BlackHole does not show up.

I am able to use it in other applications like Google Chrome or Microsoft Teams just fine, only the recording applications seem to not detect it.

I had a MacBook Air 2015 running Big Sur earlier and had no issues with it. Now I have a MacBook Air M1.