Additional information by [~Auldrick]:
An error in an update to Windows 1903 causes this and several other issues:
No sound on some systems
Incorrect surround sound behavior
Sound that changes incorrectly as you change your line of sight
You can read more about it in the Known Issues part of this page. Microsoft expects to have a fix for the issue in "late September". It should automatically be applied by Windows Update.
As a workaround, try turning off Spatial Sound in the right-click menu of the Volume Control taskbar icon.
The Jukebox volume is dependent on whether or not it is within the player's line-of-sight, not the player's proximity to the Jukebox. I put a record in the Jukebox and the volume works perfectly fine if I am looking in its direction even if I am dozens of blocks away, however looking in any other direction causes the volume to decrease/mute even if I am standing right next to it.
Expected Behavior: The Jukebox should be audible as long as the player is near to it, with with the volume decreasing as the player moves away from it. The music should sound like it is coming from the direction of the Jukebox relative to the player
Actual Behavior: The Jukebox can only be heard while looking directly at it, or at an angle that puts it just outside the FOV. Looking in any other direction causes the volume to decrease/mute.
Steps to reproduce:
Place a Jukebox and put a record into it (I tested it with strad, 11, and Cat). Stand on the block directly next to the Jukebox.
Look directly at the Jukebox. Volume will be at maximum.
Face the Jukebox and turn 90 degrees right or left. Volume will decrease.
Face the Jukebox and look directly up or 180 degrees behind you. Volume will completely mute.
Face the Jukebox and walk backwards away from it. Volume will gradually decrease and eventually mute 60-70 blocks away, but remains audible even if obstructed by other blocks.
Face the Jukebox, turn around and walk away from it with your back to the Jukebox. Volume will be muted. While walking away, periodically pause and turn around, and the Jukebox will become audible.
Sorry if this is a duplicate, but I couldn't find any of this same bug in the sea of "jUkEboX noT woRkIng!1!!" reports with no other details. I would upload a video but there's a 10mb size limit on file uploads.
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Also, in both versions the in-game background music plays over the Jukebox music, which sounds very unpleasant and makes it hard to hear the Jukebox.
*Edited for clarity- I removed from this comment what I meant to be a correction to my previous comment, before I realized I could edit comments.

Thank you for your report! However, this issue is Invalid.
This issue is caused by an error in an update to Windows 1903. You can read more about it in the Known Issues part of this page. Microsoft expects to have a fix for the issue in "late September". It should automatically be applied by Windows Update.
As a workaround, try turning off Spatial Sound from the right-click menu of the Volume Control (in the Taskbar icons).
--Sorry, this issue was reported prior to the Windows update referred to above, so that is not the explanation. But since you say it's now working as expected, I will leave this ticket closed as Invalid.--
Update: On re-checking, I'm not sure when the Windows update was applied. It only appeared for me on 30 August when I updated to the 1903 feature release, but it could have been present earlier. In any event, I'm pretty sure it is the cause of this issue.
The issue of the game music and jukebox playing at the same time is working as intended. You have the option to turn down the music volume control (which doesn't affect the jukebox).

Hi Auldrick! Sorry for the confusion, I meant that it was working as expected on the Nintendo Switch Version. I just edited my last comment to be more clear.
I can't check right now to see if the bug still happens, but I can't confirm or deny if it has been resolved on the Windows 10 version.

Im having this problem on Java, but only when using my speakers, I can hear the jukebox when I'm using my headphones
Just tested on the Nintendo Switch version, and the Jukebox is working as
intendedexpected. I am only having this issue on Windows 10.