Laptops Troubleshooting a very weird issue - Blank Screen on any sound (ThinkPad E14)

I have come across a very weird issue with a friend's laptop.
The screen goes off for 30 or so seconds whenever any windows sound comes. I have just now reinstalled the Windows and the problem is still the same.
Plug in USB - Screen off (black) for 30 seconds. Plug in charger - screen black for 30 seconds. Windows UAC popup - same. OSK clicks - same. I have thought of running a live linux distro to see if the issue is same or not.
I'm clueless as to what should be my next step in troubleshooting. Any suggestion would be helpful, thanks.

The device - https://www.lenovo.com/in/en/p/laptops/thinkpad/thinkpade/e14/22tpe14e4n1#tech_specs
10th Gen i5 10210U, 8GB RAM, 128 GB SSD, 1 TB HDD

I tried disabling the audio devices (in devmgmt.msc) but the issue is same. I uninstalled audio devices drivers and for sometime this icon (see below) was visible (Spreakers with a cross) which means that the system has no audio devices. The screen blackout issues were not present at that time. Very soon, Windows downloaded and updated the Audio drivers and same problem returned.

I tried changing the power plans, still same issue.

Figuring out that audio is causing screen blackout was itself very difficult. Like you plug in USB Pen Drive - display cuts out, you're thinking that maybe connecting peripheral device causes it. UAC prompt comes up - screen cuts out. You get any notification - screen cuts out.

I have tried running Ubuntu 24.10 from USB and as soon as startup chime came, the screen became blank.

It might be some kind of interference from audio devices that is causing this issue.

6pack said:

Is it because of power savings mode? Blanking of screen means something is changing refresh rates or power draw is too much. Switch off power savings or change to performance mode and see if it happens again.

Click to expand...

I tried running on battery, running on power, setting refresh rate at 60.02Hz & 48Hz (these two options come), same behaviour at all the settings. Batter saver/Balanced/High performance mode - same behaviour.

I have narrowed it down to audio but I don't know what could be causing the issue.

I tried connecting Bluetooth speaker and playing something from them, same issue. I thought that interference might be coming from analogue audio but it is same with Bluetooth speakers.