I figured it out woot! I am excited right now haha.
So the reason I could not get my applications to record using the "what u hear" option is because it was hidden and not set as the default device.
It was so simple too
So for anyone having the same issue.
Open recording devices.
Right click and make sure there is a check next to "Show Disabled Devices"
In the list find "What U Hear" right click it and set it as default.
Record your sounds!
I can't believe I didn't figure this out sooner.