Sharing Drivers glitch...

soundcard, os ?
 
so you have gone to preferences and checked "share with other drivers" ?
 
you might want to try adjusting your latency size on recording/playback.
sounds like a buffer issue.

You should try a quick roll-back to confirm the last release doesn't have the same issue, and the problem isn't project-specific or due to something else you just haven't yet identified.
 
With Cakewalk releasing monthly updates, it's inevitably going to be the most recent known change in a lot of cases. But there's nothing in the release notes for 2016.07 that sounds like it would have a bearing on this, and no one else has mentioned encountering anything like this that I recall, except for playback problems after the Anniversary update of Win10.