My swords SFX are muffled/compressed when they hit enemies in the Next-Gen version (PC version). What is causing this?

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Ever since patch 4.00, the sounds my swords make when they hit enemies sound muffled (I play on PC, FYI). And mind you, I'm not using any mods. To give you an idea how they sound, here's a link made by someone who suffers the same issue

I tried various things such as mess around my audio settings (both in-game and out (such as turning off spatial sound) and verify my game's integrity through Steam. Nothing worked. Maybe it's one of my files (such as an ini) that need to be removed or tweaked, but I don't know which exact one.

What frustrates me is that many folks apparently don't have this issue. Their SFX sound just as crisp as 1.32. So, what is going on with my game? How can I narrow down the issue and fix it?
 
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