This is probably more of a vmware issue than a game issue, but I dont have a real XP pc to test it with.
The sound is distorted to me unless I play something in the background, so open up a a youtube video or something and play it in the background, works even when muted.
New image of the original disc in bin/cue format, still managed to find the disc Read that bin/cue is more suited for games that may contain CD Audio. That wasnt what caused the issue with the audio though.
Game appears to be more stable with the bin/cue image instead of the ISO.
https://mega.nz/folder/V4dGkBoQ#xmLo8MKlGoG6Bzi_9W69IA
Found a way to run it in Windows 10 64-bit
Compatibility layer that helps you run 16-bit applications in Windows 10 64bit. The easiest way is to launch otvdmw and then select the application you want to run.
otvdmw needs to be run as admin for saves to work.
Could be useful for a lot of older Adventure games.
https://github.com/otya128/winevdm/releases/tag/v0.7.0
Guide:
https://youtu.be/uYU15CQcA-s?t=389