When I'm in external view in LIRR, i can not hear the alarm sound of ATC, and end up getting penalty brakes because i didn't acknowledge the alarm. I can hear the alerter sound, but not the ATC alarm. If internal view is used (1 key), all sounds are ok. Also, sometimes the the signal shows stop, even though it's actually clear (hud shows green).
So let's be honest, in reality you don't hear the sound outside either, so if I want to drive with ATC I have to stay in the cabin or I turn it off.
In reality, you don't magically fly above the train either. Besides, it works for other trains, and this is clearly a software bug for M7, which needs to be fixed.
There is a setting fot external alarm sounds. Turn it on if you want to hear alarm sounds externally or turn it off if you don’t.