Voice troubles during in-game cutscenes

UI and Macro
I am having trouble hearing the voices of NPCs during in-game cut-scenes. Basically they will fade away and shift position quickly. The former is annoying but the latter can result in missing the dialogue completely. I do try to stay in a "sweet" spot near the talking NPCs but not only is this bothersome but sometimes unmanageable.

Oddly enough about every other in-game sound works fine or at least well enough that I don't notice it. It is just that NPC speeches drop off and shift like crazy depending on my character's position to them.

I use headphones.
What happens if you turn off positional audio?
I poked around my sound card settings and found several options regarding surround sound. I will try some of them out and see what develops.
There's a headset setting in the Game Options (ESC > System > Sound) - toggling that may change the sound behavior.

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