So I fixed the problem. Line6 should pay me to give the solution (or offer me one of their products or an free update) as I'm sure it would fix many others problems. I can now play through my laptop speakers and it sounds good. I get nice clean sound and proper distortions and now the latency is gone.
So here is the fix I did and hopefully this helps others.
Under my Windows Audio PLAYBACK settings, I have Speakers - Realtek High Definition Audio as the default device. I have the quality output as DVD Quality.
Under my Windows Audio RECORDING settings, I have Digital Audio Interface - Line 6 GX as the default device. I have the listen box checked under the Listen tab. Under the listen tab I also have the "Plaback through this device" setting set to Default Playback Device. Under Advanced I also have it set to DVD Quality.
I hit the Windows Logo key + X and then selected Device Manager. Under the View drop down menu, I chose to show me hidden values.
Go to sound video and game controllers (I did same as follows for the section called Audio input and output)
I deleted any grey values that I knew I was not using or was redundant.
Choose your sound adapter and go to update driver but click bottom to browse my computer for driver software
Then select - Let me pick from available drivers on my computer
Click the Realtek high definition audio version 6.01.8237 (yours may differ)
install it and reboot when prompted.
Also, to fix latency with Line6 hardware -went into the device and resintalled drivers the same way as above
Did same with USB devices.
Log back in and rocked out.
* - note your may need to substitute above where your configuration is different for example different sound card/driver or version.
Please note, I'm not responsible for any problems that arise from the use of these directions and they are not directions provided by Line6.
OS this was done on was Windows 10