This was the most annoying issue, and apparently a conformed bug, which causes Ubuntu to fail to send sound through the Audigy device. It is shown as working, but there isnt any sound output:
Workaround as posted here.
- Install Gnome Alsa mixer: sudo apt-get install gnome-alsamixer
- Open Alsa Mixer (Type Alsa in search bar), under CA0106 and any other Audio device, untick IEC958, no need to enable anything else if it isnt already enabled. In fact none of the checkboxes are enabled on my system.
- Now right click the Audio icon on the Start bar, Select Mixer.
- Settings>Audio setup
- Audio playback>Music>CA0106 Soundblaster Analog Stereo>Test
- Now system should play sound normally!