This has been an ongoing issue since 1.6, however 1.7 still doesnt resolve this. Only when using uncompressed audio does the audio sound normal. uncompressed is not optimal for headphone usage.
This affects things such as:
when talking to other players with proximity, if you look directly at the player talking, you cannot hear them.
when using vehicles, in third person mode, the vehicle become near silent to the user. This is particularly bad for vehicles from the heavy vehicle depot.
when using uncompressed it can be difficult to tell where certain shots are coming from, including sniper shots, mortars, and anything past 200-300 meters and beyond.