Just an update: I may have fixed it now. I decided to open up the sound module and inspect it. There were no electrolytic capacitors fortunately, but strangely there was a kind of yellow/green residue covering most of the chip legs of IC's. I doused the board in alcohol and rubbed all the chip legs clean with a cotton swab. I let it dry and put it back in the o2, and now the sound seems to be working properly.
Just as a side-note, for consistency. I also (at the same time) fixed an issue where I was getting an error constantly spammed in my console: 'rstat: Error 0'. Turns out that following the IRIX security hardening tutorial I disabled this service in inetd.conf, and obviously some service was constantly calling for it. Now, I don't know 100% for sure whether this problem was related or not, or whether it was simply cleaning the audio card. I just wanted to make sure I note this, just in case I ever run into the problem in the future.
This is the card before cleaning, you can clearly see the yellow / green residue especially on the IC's in the bottom right, and on the main decoder chip: