Thank you for your reply. I reinstalled and even updated the audio drivers and I am still having the same problem. I called Gigabyte and they had me unplug the FAudio connector and even try replugging the 3.5 inch connector into another slot, but nothing seems to work.
They said, I can RMA it, but before I do that I want to wait another week to see if I can solve this issue.
I did try some of the things you mentioned, but did not eliminate the problem.
Any other suggestions? How do I fix grounding problems? Should I just RMA the motherboard?