I played around with Orecchiette for a while and found few things maybe worth noting. First I could not get the AAC recording to work. It onle recorded two clicks and nothing else. Only after I tested the wav recording I got the AAC to work. Then I shut down the app and restarted it. Same problem, but this time I did not even record with WAV, I only chose it and switched it back AAC and got it working. So I think that the chosen codec at startup is somehow empy, but it shows AAC, and after real selection is made, codec is chosen and the app starts to use it.

Other thing I noticed is that if I adjust the output volume to zero (muted) the output is no longer recorded. The output volume does not have other effects on the recording only the mute.