Poor sound quality in Music App on Macbook Pro

I'm noticing some anomalies in the "Lossless Audio" for tracks. Whenever I have the Control selector as "Computer" (photo #1), the audio quality is absolutely horrendous; it almost sounds like it's coming through a landline telephone. If I select both "Computer" and "Living Room" (photo #2), the audio quality is drastically better; more mid and low ranges coming through.

Now the weird thing is, some of the tracks in my library have the "Lossless Audio" emblem when I play it (photo #3); which sounds night and day better if I only select "Computer". However, I go in to change the preferences (photo #4), and there is not much of a difference in sound quality (it just gets quieter) and the emblem disappears.

And randomly it will correct itself and sound just fine with the "High Resolution Lossless" Streaming and Downloading selected, but it's not 100% the case.