I included the reference to the new OS as it lists many of the problems users have found in upgrading to the new os, many of which are sound related.
It looks like you have 3.2.2 installed, but also parts of 3.1, so you might consider using
sudo apt autoremove to get rid of some redundant stuff. Alternatively
sudo apt purge sonic-pi
followed by
sudo apt autoremove
The new OS has had several sound related changes since it was released, so it is worth doing
sudo apt update
sudo apt upgrade
to make sure it has all the latest files.
Then reinstall sonic-pi 3.2.2 from the deb file.
Then add the temporary fix detailed here to add the changes to get sonic pi to play ball with pulseaudio.
Reboot the machine having doe so then try sonic-pi. Hopefully all being well you should them be able to select your sound source by right clicking the loudspeaker icon.
I frequently build new sd cards from scratch. It is a fairly straightforward process and avoids problems that may arise from upgrading a previous OS eg scratch to buster.
I’m sorry you are having these difficulties. We are working hard with Sonic Pi to get version 3.3 ready, and this should include fixes so that it will work properly with the latest Raspberry Pi OS. Hopefully ready in the next few weeks for Mac Windows and RPI. I am currently testing a new .deb file for the latest beta, although there are a few further changes to be incorporated before the release.