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This is reported if the sound engine is initialized to use 3D Audio Objects, but the Windows Sound Setting Spatial Sound is turned off. All Audio Objects will be mixed down to the audio bed.
This is only an informative message. The game will be playable, but the sound will not be 3D.
Recommended resolution steps:
In the Windows Sound Settings menu, select Spatial Sound (Off) to toggle the use of Spatial Sound.
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