When AirPods are connected to a Mac, MacOS will automatically select them as both the default audio output and audio input device settings. This can cause unexpected audio quality loss, related to Bluetooth audio limitations.
AirPods rely on Bluetooth to connect, and when the AirPods microphone is activated, they will switch to headset mode. Headset mode reduces the sample rate of audio output to accommodate transmitting the audio input stream within the same bandwidth envelope. This has the unfortunate side effect of reducing audio quality.
To avoid this, use SoundSource 6's Audio Devices window to select AirPods, then use the Mode pop-up menu to select the Output Only mode for the AirPods. This will prevent the AirPods microphone from being used as an input device.
You’ll need to use an alternate input device such as your Mac's built-in microphone or an external microphone to get audio input. But by keeping the AirPods in Output Only mode, they’ll retain their audio quality.
For more details on the limitations of Bluetooth devices, as well as information on Headset mode, see this article on Apple's Support site.