I was trying to sign into Lync when this issue occurred. I checked the Lync logs and found that there was an issue with the audio device not being "a telephony device". Strangely, it works well with my Lync client from the store (Windows 8.1), however, the Office 2013 version records that error.
I thought of reconfiguring the microphone. I opened the wizard and selected the third option (built in microphone) and clicked Next. The moment I said Peter from the text there, the wizard closed. I tried the other two devices as well, hoping one o the options would work, but all of them happened to crash. Also, the wizard remains on the screen until I say Peter - the moment some sound is detected, it crashes.
There's nothing regarding this in the Event Viewer. I uninstalled the driver (Conexant Smart Audio HD) and scanned for hardware changes which automatically installed the device again. I have tried disabling the Bluetooth devices as well. Could someone please help me with this situation? I remember launching Lync successfully about a couple of months ago... I don't know what changed.