I am the developer of Wallpaper Engine on Steam ( https://store.steampowered.com/app/431960/Wallpaper_Engine/ ). Nahimic is an application injecting DLL hooks that make Wallpaper Engine crash and bug, leaving our customers puzzled about what's wrong. There doesn't seem to be a way for them to configure Nahimic so that it can be running without breaking Wallpaper Engine.
Please exclude Wallpaper Engine from your hooks: the audio hook which breaks WASAPI loopback recording and the OSD hook which makes the whole program crash. I don't think it is beneficial to have them here, since Wallpaper Engine is always running in the background. So excluding it would be the easiest and safest choice.
This problem has existed since I released Wallpaper Engine in 2016. Nahimic is blocking WASAPI loopback audio recording in numerous other programs (Rainmeter, OBS), so this common issue should be well known. Same for the OSD crashing programs by interfering with their renderers.
Please exclude these executables: