I've fixed the issue, I think. The cause was following Gregg Young's tip to use "DOS=HIGH, UMB" in CONFIG.SYS instead of the default "DOS=LOW, NOUMB". Loading DOS high caused some issues within the WinOS/2 environment. I also experienced sound problems and crashes when playing games with sounds. The cause was os2audio.drv from "WinOS2_Audio_19980501.zip" that I came across at Hobbes . I switched to "OS2WAVE.drv" from "genaud-v3.1r02" and seems to work when 'EMS_MEMORY_LIMIT' is set to ZERO in the WinOS/2 settings.
Lewis Rosenthal has said that a working WinOS2 audio driver called DTA will be shipped with ArcaOS 5.1. I'm not sure why it isn't shipped yet because Arca Noae has bought a license for the driver used in eComstation and it should work. But maybe there still are some bugs to be fixed. And the DTA doesn't seem to be available to download anywhere at the moment. Hopefully OS2WAVE.drv will work well enough for now.