"ReSpeaker Lite" - new Seeed Studio Voice Assistant Development Kit hardware combine ESP32 with XMOS XU316 DSP chip for advanced audio processing as a ESPHome-based Home Assistant Assist Satellite voice devkit

It looks like faulty microphone, maybe?.. If speaker works, mic should work too.
Are you sure you didn’t alter the config? For mic to work, Respeaker needs my fork of i2s audio, because Microwakeword doesn’t work with native 48kHz, and my fork is resampling it to 16kHz.
I saw somewhere snippet by Jesse from ESPHome team, that implements simple UDP microphone. But i can’t find it now… That would allow you testing the mic. Maybe check something like this Record sound from I2S microphone - #6 by diy62 - it might help you to check if mic is working physically.