Unfortunately a bug has sneaked into the TeamTalk Classic v5.7 which prevents audio device selection until the client is restarted.
A simple workaround in TeamTalk Classic v5.7 is to restart the client application after selecting audio devices.
A beta release of TeamTalk Classic v5.7.1 is available here which fixes the issue: TeamTalkClassic_v5.7.1.5029_Portable.zip
The issue is discussed here.
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