@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.