Seems like this also affects many other audios that should stick with the player causing it, such as:
eating food
drinking a potion
using a rocket while flying with an elytra
using a horn
wearing armor
shooting with a bow
taking damage
triggering the totem of undying
The audio issue is more noticeable when traveling using an elytra or minecart.
It's also observed that the volume drops too quickly if you face away from the sound origin from a distance compared to facing it (moving forward while triggering the audio vs moving backwards).
Hello.
It seems to be an issue from nearby entities and blocks creating sounds, like noteblocks and zombies. It didn't matter.
I use stereo headphones when playing Minecraft and the only audio-related software I use is Realtek Audio Console, which comes with my Windows. However, I have tweaked some settings in that software but it didn't seem to fix the issue.
I have Audio Enhancements enabled and disabling it seems to fix the issue. Toggling that option also enables/disables Signal Enhancements in the Speaker Settings, and vice versa.
It seems that Minecraft in Windows follows the settings configured to the connected audio device. In-game audio settings does not have the option for enabling/disabling surround sound, or switching between stereo and mono.