I had originally ported my code from 4.8.2 to 4.10.1 manually and then tested a fresh copy of the 4.10.1 shooter game to confirm my results.
Just to confirm, you are saying you do in fact hear the footsteps of non-local players on each game instance for a fresh instance of 4.10.1 of shooter game?
Here is my DXDiag http://hastebin.com/egalojotam.tex