This wasn't an issue before they released Summerset, but as soon as Summerset dropped I immediately started having this issue, so I'm assuming they fiddled with the scaling of the audio... Sometimes when you are rounding a corner or are approaching a scene, the NPCs will begin to start their dialog scene (sometimes when you are in the adjacent room or upstairs) and it is obvious that you are supposed to hear what they are saying because it is important to the story. Sometimes, you are standing across a ravine (Veya in the Cathedral of Webs) or on the other side of a big room (the Council Audience Chamber in Sadrith Mora) and they are actually shouting at you across the gap. HOWEVER, ever since the Summerset update, the audio is scaled so exponentially that any NPC more than 7 or 8 paces away is basically inaudible. They sound like they are miles away, and you can't hear what they are saying. At least I can't, I don't know if it's just happening to me or not.
YES, I have gone into my settings and turned my dialog all the way to max! I have turned my system audio all the up for ESO on the sound mixer. I don't have trouble hearing dialog in any other part of the game, it's only when the NPCs are far away, but it's obvious I'm supposed to hear what they're saying. Is there a fix for this? Is anybody else experiencing this? Like I said, this only started happening within the last few months.