With the help of a friend I discovered the answer to my problem yesterday. I share it here for others who might have the same problem.
In short, the process for creating a new track changed slightly in the new update, and my new tracks were defaulting to my internal microphone rather than my USB microphone. Hence, my recording quality was bad because even though I was talking in to my USB mic, I was recording through the internal mic. doh.
Here is the way to make certain this doesn't happen to you.
1. Click the "+" button to add a new track (just like in the previous update).
2. choose your input
3. BELOW the input dropdown menu, there is a line of text that reads "My instrument is connected with: ... " If this is not what you want to be recording through, click on the text and choose the input device that you want.
4. unrelated to this problem, but important. BESIDE the input text is another line of text that says "I hear sound from: ..." If you are having trouble hearing your track, this is the place to pay attention to.
Good luck, and may my pain be for your gain.