You might go to Applications > Control-click on iMovie icon > Show Package Contents > Resources > iMovie Sound Effects. Are the iMovie Sound Effects there?
Sometimes shutting down and restarting the computer resolves issues.
If that doesn't work, try deleting preferences. To do that open iMovie while holding down the Option and Command keys and select to delete preferences in the box that appears. iMovie will open in a new library. Reopen your old library to get back to your projects. Deleting preferences is a safe procedure that will not cause data loss or disruption to your project.
If still no luck, try these two procedures, that are very easy to do: :
Try resetting the System Management Controller (but no longer available for the new
M1 computers):
https://support.apple.com/en-us/HT201295
Try resetting the NVRAM or PRAM, although this issue would be fairly rare:
https://support.apple.com/en-us/HT204063
All else failing, try a redownload of iMovie. To update/redownload iMovie 10, drag your iMovie 10 app from the Applications
folder into the trash, but do not empty the trash. Sign in to the app store and open your purchases folder by clicking on your name at the bottom of the app store side bar. You will see your purchases displayed, including iMovie 10. Redownload/update
iMovie from there. If not successful, drag your present iMovie app out of the trash and return it to the Applications folder.
-- Rich