Thanks @ Sniper Reload3d I set the rocksmith as default microphone and disabled all other devices. Im plugging into the USB to my PC and not hub. as well checked the properties. It is set to 48hz/16 bit DVD and boxes are checked. Could it be my ini file ?
Here is what I have in my Rocksmith.ini
[Audio]
EnableMicrophone=1
ExclusiveMode=1
LatencyBuffer=4
ForceDefaultPlaybackDevice=
ForceWDM=0
ForceDirectXSink=0
DumpAudioLog=0
MaxOutputBufferSize=0
RealToneCableOnly=0
MonoToStereoChannel=0
Win32UltraLowLatencyMode=1
Yeah odd issue.