Thanks for the reply @Beard -- I did some troubleshooting based on some googling I've done so far, it seems to be resolved at this point. Note that I have Voicemeeter installed (failed to mention this at the OP)
For anyone else running into this topic by forum search/Google -- If you're installing a new microphone and you already had Project Zomboid and Voicemeeter installed -- then you run into this error;
Install your mic and do some testing. Make sure, that at a base level, the mic itself has no issues.
Ensure that the frequency of all your audio devices (input and output) are set to 48000hz, to avoid other potential issues. This includes whatever changes you need to implement in Voicemeeter.
Backup your last known working settings for Voicemeeter. Or just what you have on settings now.
Uninstall VB-Cable (if you have it) and Voicemeeter.
Restart your PC
Reinstall Voicemeeter, then restart your PC
Load your settings using the backup file you just created
Run PZ through whichever method you usually start it.
I suspect that the issue has to do with whatever settings Voicemeeter and/or PZ are configured for since you last installed it, so adding a new audio device that might run on a higher frequency may cause the error to happen.
TL;DR: Set your audio frequency settings to 48,000hz at maximum, then reinstall Voicemeeter.