Maybe you misunderstood something. You have to assign your physical inputs (from microphones or line in signals) to the output of your multitrack recording target.
Let’s say you want to record via USB-B 32 channels to your computer. This would be the most reliable recording option with the most possible tracks. Using the internal SQ-Drive gives you only the opportunity to record max. 16 channels and you have to take care that the mass storage is fully compatible with the SQ. But let’s do it with the USB-B.
Please read the actual reference manual (https://www.allen-heath.com/media/SQ_ReferenceGuide_V1_3_0.pdf) for details. I will give you hints which chapter would be relevant.
Prior firmware version 1.3 you have to assign on the IO outputs tab the direct outputs to the USB outs (see chapter 6). There are also options for using the direct outs of the channels. this can be done via the Routing page of any input channel (chapter 8.1). Using direct outputs of the input channels will have the advantage that you will have a 1:1 relation between what you are mixing and what you are recording. No matter how the input patching is actually done. you can even record post channel processing (something I definitely do no recommend).
With the new firmware you can use tie lines to assign directly the input sockets to the USB outputs (chapter 6.6). This allows you to record your physical inputs no matter they are used for mixing or not. this can be helpful for instance when you like to record also some ambience for a better live atmosphere. The pros on this option are that you will record exactly what comes into the SQ and you cannot damage your recording signals by accidentally doing a wrong processing. On the other side you have to select your input sockets carefully especially when you do not use a 1:1 patching of the input channels.
