Hi
MisterWicked1!

If I understand, your setup is to get the best Audio on your Headphones (Arc MK2 Optical In) and a better Mic quality (Quadcast USB)
GoXLR/GoXLR Mini
are not compatible with
PS4/
PS5. In order to use it, you need and Audio Interface compatible with Playstation as an intermediate that have a Audio In and Audio Out so you can communicate your PS with the GoXLR. A USB Sound card can do the trick.
Is going to be a cable mess, so embrace.
This is a rough diagram on how to make it work. On the lined square

Explained:
PS5 Only sees the USB Soundcard. The USB soundcard should be set as your Audio Device Out and Audio Mic on PS5 menu. The Headphone signal from the USB Soundcard will take the Audio into the GoXLR via Audio In so you can use it on your Streaming PC.
The USB Soundcard Mic will receive the Line Out signal from the GoXLR, where your XLR mic voice comes. Mic input is not like a Audio In input, you need to lower this signal that's why I suggest to use an inline volume controller, for better results.
Then at your Streaming PC on the GoXLR options you can route/select how to manage audio on your stream.
My Routing:

Broadcast Stream Mix is "What my Stream can hear".
OUTPUTS this are the Slider that you can change levels or mute on your GoXLR.
read
INPUTS as "What I can put in the devices"
As you can see I want the MIC (XLR mic on GoXLR) to be present (tick icon) on:
+ My Headphones, to monitor my voice.
+ Broadcast Stream Mix, so my stream viewers can hear it.
+ Line Out, my voice goes to the Line Out so the USB sound card can hear it and use it on PS Chat.
+ Chat Mic, mute your mic for the Stream or your Console (so you can talk with your audience and not bother your friends on PS Chat party) or both.
As you can see, I don't have
Music as Slider or
Chat (Discord) and Console(SPDIF In).
I personally prefer to put the music on my Streaming PC, and manage its level on OBS. Also I have a special filter that allows me to "duck" audio, meaning the music sound clear and strong but... when I speak and my Mic Signal pops up, the Music level lowers down subtle fading so you can listen my voice while the music is nice in the background, once I stop talking music level goes up subtly, this is fancy sh1t I learned when I worked on a radio station.
I don't use Discord, I chat with PS Chat party.
Console Game doesn't have its Slider either because I'm not using the SPDIF, my game audio is going directly to HDMI to my Integrated Capture Card, same with music on OBS I manage the levels and add that fancy filter I told eariler (ducking). So my voice is present and clear and Music and Game Audio are ducking.
Ufff, that was a lot information, I hope I have not confused you.
GoXLR / GoXLR, requires a Streaming PC. Is pretty cool to have the sliders to manage your mic level, music, discord chat, and game audio, but in my case because I do music on my PC and chat on my PS, I only use the slider for Mic and the Voice Chat of PS.
If you don't have a Streaming PC or a good CPU for streaming or a nice GPU for encoding your streaming, if you want to do everything with your Playstation built-in Streaming Feature, you don't need GoXLR Mini, a USB Mixer compatible with PS will do the job to connect any XLR mic to your PS5, and manage your chat audio.
Phenyx Pro USB audio Mixer ($70 usd).

Microphone I recommend even though you have make your mid is sE Electronics V7, is a dynamic mic supercardiod that completely blocks keyboard strokes and don't need a sound treated room, it has very nice low end, sound similar than MV7 for $99, if you connected to GoXLR Mini or with Equalization via Software you can make it sound indistinguishable like the $500 shure SM7b.