You have DSD+ listening to itself (via VB Cable)
How so? From what I can tell, I've followed all the instructions. Also, I hear analog fine with the same settings (which is still using VB-Cable).
Look in the pick you posted. See the 2 lines right before D Star decoding enabled?
audio input device #1 set to (cable output (vb audio virtual)
audio output device #2 set to (cable input (vb audio virtual)
Those 2 lines tell you what dsd is using for input/output. The lines above that, those list available input devices and available output devices. The only input on your pc is vb cable, so it will set that one properly each time as that is what it defaults to in this case with only one input. .
For available output devices, your pc has vb cable and pc speakers. You need to tell dsd to use the pc speakers (output device 1). If you dont tell it what to do, it makes its own decision and in this case it looks like its picking vb cable to output decoded audio to. You want the decoded audio to play thru your pc speakers.
Make a text file and add the following, this will tell dsd to use input #1 (vb cable) and output #1 (pc speakers) to send the decoded sound to your speakers.
dsdplus.exe -i1 -o1
Now save it as Dsd_test.txt and then change the extension from .txt to .bat.
Now click that (Dsd_test.bat) and see what those 2 lines list when you start up Dsdplus.