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I love this tool and its really helpful!
But lately and quite suddenly SUVA does not want to recognize any microphone audio regardless of what my default microphone is. I don't know how to fix this.

Thanks for letting me know!
You can try deleting your AvatarProfiles.json file (make a backup first though). Maybe something in your saved profile is causing it. You can find it via a button in the avatar settings. Afterwards restart SUVA.

Also make sure that your start SteamVR first before you start SUVA, it likes to change your audio devices to the VR HMD (in case you use SteamVR tracking).