Even with levels set way above, the ALC is not displaying when I am in tx data mode using FT8.
That either means that audio drive is not set high enough, or that something is broke in the radio. If you see ALC on SSB, I'd say it's audio drive. That means setting the Power slider in WSJT-X to max, and increase Line In gain (the Mic Gain knob) until you see 4 bars flashing 5 on ALC.