most likely your second track (the one you are recording on) is also assigned to outputs 1/2 as well which is causing feedback. the problem of feedback will occur because once the click signal is input into track 2, its output is going out and back in the source. whatever is being output through 1 and 2 is what you're recording, which will cause the loop.
either disable the outputs of your recording track in your DAW or assign it to other outputs until you're done recording and it should work just fine.

