It is location based! That’s why you can’t hear it, because your character is not there. What you mean is camera based, and I agree! This feature would be really useful to have!
It works as intended I think. You’re supposed to hear players/audio from the characters location in BR, otherwise you would be able to rotate the camera around and pick up any incoming audio from the cameras location which would feel a bit odd hearing things that are further away from you.
But we could use that extra freedom, as our games aren’t BR. Perhaps some sort of ‘Camera based Audio’ checkbox for both the Camera devices and the Audio Player could be useful.