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I'm guessing there's some issues with the software installation when Steam first launches the game.
As mentioned here[www.radgametools.com] on the same website, RAD Video Tools is primarily a set of utilities for processing video, animation, and sound data. However, the important part of the installation here is the official Bink Video codec, which is what the cutscenes of Battlestations: Midway also depend on as far as I understand.
Since installing the Tools fixed the cutscene audio issue for me, I believe that Steam failed to properly install the Video codec during the first launch of the game, thus the cutscenes weren't played properly.
It's mentioned right there next to the download link for me.
"The RAD Video Tools (includes Bink) for all Windows versions.
This is a 7zip compressed and encrypted file - password: RAD."
that worked perfectly, thank you