Hello AdvisorMp,
Thanks for the swift response.
I tried what you've suggested, created a new user and made a facetime call using that. Same problem.
Then I returned to the main user and tried transferring a phone(mobile) call from the Iphone to the mac. Same problem.
BTW no distorted sound listening to music on the mac for ex.
I tested facetime with airpods, i can say, it was quite clean, however the audio quality was somewhat low, but no interruptions or distortions.
I made a voice memo and the sound was distorted on the recording. Tried with different settings on the input volume. Did not help. The volume setting works, but the distortion aka cracking noise was still present regardless (not with the 0 input though=completely silent).
I've restarted the mac and remade the voice memo and this time the recording was clean. Tested the facetime and works fine now.
I guess there was something wrong with the audio driver after the os update. Should have tried restarting the machine, but we're not used to do that on a mac, when we experience a problem. Lesson learned.
Thanks for your time, all the best!