Ok, so for about a couple of months now, I've had a problem with my PC where my headphones and mouse will stop working, but my keyboard will still work, and I can't do anything until a restart. As if my whole PC was hanging. I'm not sure why it does this. I've tried wiping all my drives and starting from scratch and the problem still persists. I don't know why this happens and it's getting annoying. Any ideas?

If you wiped everything and did an absolute fresh install then either:

You re-installed something that causes this
It's a hardware issue.

Try switching your mouse and keyboards USB spots, does the mouse work now when everything else hangs?

I’ll try it tomorrow and let you know.

Hardware or Drivers maybe conflicting or not updated?

USB port maybe bad on mouse and same on jack. I had problems like this before. Is your setup older?

Tried switching mouse usb ports?

I tried what Yiggles suggested, still the same results. I unplugged my 3.5mm cord from my headphones and the problem somehow stopped. I'm not sure why. But now I'm playing off usb audio which for some reason sounds worse and noises too low are completely cut out. I'm getting a new headset soon.

What headset do you have?

Turtle Beach Z22

Headsets, especially those with built in amplifiers, are notorious for causing all sorts of hardware issues due to shorts, degradation, etc.

Do you have the latest driver for your headset? I would double check that, but if the drivers are up to date I would start reading the fine print of the manufacturer's warranty.

I had the same problem on my PC, USB ports were going bad. Instead of trying to fix them I just got a new computer lol.
But that might be the issue.