It looks like Core Audio would be appropriate for capturing audio from devices, but what if you want the audio that's output by an application/window? Is ScreenCaptureKit the only option for that case?
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In my case, it was because I had the Comment Here Xcode Extension installed, which I'd set up to handle comments through Comment Here > Toggle Comments (Editor Menu for Source Code) instead of the usual Xcode action, Structure > Comment Selection (Editor Menu for Source Code). It appears it had lost permissions following an Xcode update.
I granted it permissions again through System Settings > Privacy & Security > Others > Extensions > Xcode Source Editor: