@mitu
I've already done that, a number of times.
There's something more complicated going on here.
I attempted a completely fresh install to track my progress better step-by-step.
It's here: https://retropie.org.uk/forum/topic/34489/continued-sound-issues-some-kind-of-bug
There seems to be:
A bug somewhere in the RetroPie audio script since 4.8 (whatever update coincided with the ".asoundrc is no longer being used" message).
Why would raspi-config generate .asoundrc when we should be using /etc/alsa/conf.d/99-retropie.conf? Why multiple config files for the same thing?
Something kind of bug or interaction with omx player.
I think most of those who are posting with lvl0 volume mixer issues who aren't helped by your guide are stumbling because they have omx player enabled.