Aye nevermind guys I fixed it!
In case anyone else runs into this:
For some reason my headset automatically sets the sound quality to “telephone” 16bit 1 channel if the microphone is enabled. Disabling the microphone made the audio come back. It was a computer problem, not really an unreal problem. Although, other sounds like youtube sounded ok and not distorted, so theres definitly a bit of an issue with the brain-splitting feedback noise, but anyway, problem solved!