Studio Display speakers and microphone cut out or microphone makes thumping beat

I likewise just started experiencing this same exact issue. Have had my SD for about three months, without issue. Admittedly, I had not used the speakers all that often, but up until a week ago or so, they worked just fine. The faulty situation is now happening consistently. My SD is attached to a Mac Studio, so everything is new.

SYMPTOMS

• sound from speakers cuts out after 2 seconds
• microphone input is pretty much non-functional - FaceTime users can't hear me, or hear a repeating sound

TROUBLESHOOTING (running latest OS 12.5 Monterey)

• power-cycled computer - both speaker and mic issues persist
• set up a new, totally clean Test User - both issues still present
• disconnected all peripherals - both issues persist in both original and Test User
• tested microphone input at System Prefs Sound panel in both Users - rarely reacts or reacts and then is "stuck" or "repeats"
• AirPods work correctly in both Users (AirPods use Bluetooth, so I expected this to work)

I did not associate this with a specific software update, but it could have happened from 12.3 to 12.4? Issue was definitely present for me in 12.4 earlier today. I then updated to 12.5 but have the same symptoms.

Sure feels like either a straight hardware issue, or perhaps a sw/hw combo problem. Will try to take my SD to Apple Store and have them plug in to test. Will report back after my visit. Really hope I don't have to do a clean install of OS .... ugh

OK - so, a "fix" described in another thread about this same issue appears to have worked for me, as well.

• Unplug the power to the Studio Display (from the wall)
• Leave it unplugged for a couple of minutes
• Plug it back in

Magically, my speakers and microphone now behave properly!

This definitely sucks as a fix, but hey, if it works, do it until Apple comes up with a PROPER fix! And be sure to keep letting them know every time your speakers and/or mic fail again, which has happened to some who have used this fix. Re-doing the power cycle of the Studio Display seems to work each time to bring things back.

I had exactly the same issue after having the studio display for almost 4 months, used with a Mac studio.

Unfortunately everything I tried, including most of what has been suggested did not work. I had to take the studio display back to the Apple Store and got a full refund. Just purchased a new display.

It appeared to be a hardware issue.