The microphone should just work.
Can you explain a bit better as to what tests have you conducted that lead you to believe that that microphone is not working ? You noted VU meter (Audacity or in Terminal) indicated significant ‘white noise’ reaching the driver but no added response to internal microphone. And you also noted if you attach an external headphone set both in and out work fine. You make no reference to the docking station, so I assume you are NOT testing this with the docking station.
From the above I deduce when not connected to the docking station, an external mic DOES work, but the internal mic does NOT work.
The internal mic is typically a digital mic, and from a ‘wiring’ perspective it is typically associated with the webcam.
I note capture at only 50% for the digital mic:
**Simple mixer control 'Digital',0
** Capabilities: cvolume
Capture channels: Front Left - Front Right
Limits: Capture 0 - 120
Front Left: Capture 60 **[50%]** [0.00dB]
Front Right: Capture 60 **[50%]** [0.00dB]
I also note the automute enabled:
Simple mixer control 'Auto-Mute Mode',0
Capabilities: enum
Items: 'Disabled' 'Enabled'
Item0: 'Enabled'
You could try disabling the auto mute, and also try increasing the % capture on the digital mic.
I also note from the script you ran the following:
ARECORD
**** List of CAPTURE Hardware Devices ****
card 0: PCH [HDA Intel PCH], device 0: ALC269VC Analog [ALC269VC Analog]
Subdevices: 1/1
Subdevice #0: subdevice #0
From that it is clear that your recording device is hw:0,0
When you were testing in a terminal, is this the command you used ?
arecord -vv -f S16_LE -c 2 -D hw:0,0 newrecording.wav
That would record to the file newrecording.wav and you would need use <ctrl><c> to stop the recording. Then play back newrecording.wav in a text editor.