Steinberg CI 1 and 3.5mm Microphone Compatability

First off, the microphone should be plugged into a microphone input, not a 1/4" line input (wrong sensitivity)

Second the microphone input is a balanced input and most likely the headsets microphone is not balanced!

Maybe try a 3.5mm to 1/4" unbalanced adaptor, plugged into a 1/4" to XLR adapter, into the interfaces Mic input!?