I don't have a separate device in the top half of the Volume Control screen, but have three options in the dropdown in the bottom half, under Built-In Audio Analogue Stereo, with choices Front mic, Back mic, Line in, which change to plugged/unplugged depending on circumstance.
Here I can see that my front mic is plugged in, and the slider reacts when I speak into the mic. But I cannot get sound recorded in Skype, nor Audacity, though I am not terribly competent with the latter.