It is not possible within Totalmix only.
Dictation seems to work fix on channels 1/2 and your loudspeakers are connected to channels 1/2 this is the conflict.
It is possible by using an additional software like Loopback from Rogue Amoeba
Another workaround :
Use an external mic preamp and connect it to the line input number 1 on the backside of the UFX.
Then the mic signal goes straight into Dictation without need of any Loopback.
or (this is the best solution I can offer) :
create a cable Loopback with a jack cable on the backside of the unit, from any line output to input 1, routing the mic signal in Totalmix to the output with that cable. This is cheap and done quick. (and switch off all loopback in Totalmix)
It is all a bit cumbersome but thats how it is.
Please check if this Dictation tool has a preference setting to select different input channels, I think it can't but thats just my expectation.
M1-Tahoe, Madiface Pro, Digiface USB, Babyface silver and blue