Dear Kunj Chhatriwala
Thanks for reaching out! Welcome to Microsoft Q&A. I'm Haien from Microsoft Q&A.
The core of this problem is that your operating system is failing to detect an audio output device. This can be caused by a variety of factors, but the most common one is an issue with the audio driver. The driver is the software that allows your computer's operating system (Windows) to communicate with its sound hardware (the sound card or integrated audio chip):
Solution 1: Reinstall the Audio Driver
- Right-click the Start button and select Device Manager.
- Expand the "Audio inputs and outputs" or "Sound, video, and game controllers" section.
- Right-click on the Surface audio device (it may be labeled as "Realtek(R) Audio" or similar) > select Update driver > Search automatically.
- If unresolved, Select Uninstall device. If an option appears to "Delete the driver software for this device," check that box.
- Restart your Surface. Windows will automatically detect the hardware and reinstall a fresh copy of the driver
Solution 2: Run the Audio Troubleshooter
- Go to Settings > System > Troubleshoot > Other troubleshooters.
- Select Recording Audio and click Run to diagnose microphone issues.
- Select Playing Audio and click Run to diagnose speaker issues.
- Follow the on-screen prompts to apply fixes.
For additional information about fixing audio problems, please visit this article to know more: Fix sound or audio problems in Windows - Microsoft Support
Please keep me updated with anything new that you were try to each option.
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We appreciate your patience and look forward to resolving this quickly for you.
Warm regards