@ToxyPoxy Thank you all for the quick response! 🙂

After I woke up I tried to reinstall UT 20 and that did not do anything so I installed older version UT 16.0 with the same result. I tested the camera app and the sound for the video was not working.

This issue is now solved, and all I had to do was turn off bluetooth and restart my phone (why on earth is bluetooth and location on after installing UT should be off) 🙂

After running search on the web I saw many people had some issues with the microphone on the Pixel 3a.
So I found my solution in this article:

https://support.google.com/pixelphone/answer/9706190?hl=en#zippy=%2Cothers-cant-hear-me-on-app-calls-like-meet-or-skype

So I hope this will help someone in the future.