What am I doing wrong? [With Audio]

The guitar tone sounds good overall. You have a lot of mid range that gives it a nice singing tone. The excess mid range makes the recording sound a little muffled.

You could pull out the mids in the Kemper.

If you lose some singing tone from the Kemper cut, I would just do a mid cut EQ in your DAW after recording. Like lose a little 400Hz and boost a little 2kHz if it still sounds muffled.

I would play with removing the AMP compressor to see if the sounds gets more dynamic also. Adding Direct Mix helps that also, I see you have some already.

Direct Mix adds mids also. It depends a lot on your Amp EQ. Would be great if the Direct had its own EQ. That would help a lot.

The Kemper AMP mid is hard to dial in because it adds some gain/volume. So your ear hears the gain getting stronger and you think it sounds better. But its really just getting muddy.

I agree with Rosbone. I would add that mids put your guitar more forward in the mix. That also makes the guitar sound too loud for the backing track (but can sound good for soloing tracks out side of a rhythm track). I always feel that cutting the mids in a mix adds more warmth because it gets set back in the mix and complements the other tracks (bass and drums). You can cut the mids very lightly and add a slight bit of reverb. A pinch of reverb won't be that noticeable in the mix but will set the guitar back some without you having to cut the mids too much. Too much of a mid cut and you start to get muddy with the lows (bass and kick). It's a balancing act on a high wire.

And I learned all this just today!