audioDeviceAboutToStart() callback is not called in Ubuntu 20.04 on AWS

I have been able to solve the above issue using:

sudo apt install linux-modules-extra-`uname -r`

Now the above callback is called and the selected in/out audio device is:

Playback/recording through the PulseAudio sound server

but the audio quality is not good. This seems to be a problem seen previously:

but there is no satisfactory solution for it. Are there other sound servers that can provide better audio quality ?