I know that last answer was well intentioned, but I do not think programming the CAB2 legacy has anything to do with this specific problem related to static or the sounds.
No it's not an electrical filter problem either.
No, doing a reset is not likely to be the fix either. Page 13 of the linked manual. I mean sure, try it but that just sets the function of the radio receiver that also controls the lights- the sounds are solely the rail sounds module. If you got it wrong (example code 5)- I think you might make the lights blink like a strobe beacon. It's bog standard R2LC / RADIO RECEIVER (C08 CODE) so yes, the function code 6
6 = Smoke out as CAB Light
The manual link https://www.lionelsupport.com/...ents/71-5405-250.pdf
I would first ensure you are not confusing some of the sounds like
Rail Clatter: This feature accurately recreates the sound of car wheels passing over rail segments, timed to the speed of the car. It is triggered by motion in Command and conventional modes.
Brake Let-Off Sounds: Triggered by motion and stops in both Command and conventional modes, or by direction changes in Command mode.
The manual links also has instructions for taking the car apart which would allow for access to the speaker and the boards.
Next, this car is roughly 18 years old, so the speaker might be failing and just because some things are clear, other loud sounds could distort a failing or marginal speaker.
If it's not the speaker, then I would unplug and reseat the module rail sounds and power board in the car to ensure it was not slight oxidation on the contact pins or just loose connection.
https://www.lionelsupport.com/...s-Diner-3170-6-15520
Also, speakers and magnets tech have improved significantly since 2004.
A good 8 Ohm 50mm (AKA 2 inch) speaker can be sourced (just google 8Ohm 50mm speaker ) that is one heck of an upgrade over the old paper cone stock speaker. This with a much stronger and yet smaller magnet, longer cone throw with a rubber edge, and plastic cone is just a night and day over a paper cone IMO