Ahh Borgmac… 
Living life on the edge - pushin’ that envelope.
A third generation copy, what could go wrong?
OK, OK, believe it or not, I am installing right now Mac OS9 Z1 9.2.1 from the original disk that I had when buying this computer 20 years ago, you better be very careful, as usual

OK, definitely going for a hardware problem, but better to start from a secured base.
Actually did some tests with all control Panels and Extensions and the internal speaker, as it did start up with working sound.
10 tests with Sinloon IDE SATA
10 tests with StartTech IDE SATA
Results are similar,
50% of the tests, sound OK
50% of the tests, hissing at desktop for one second. These 50% are not necessarily the same as above!
If you are interested, results attached.
I am going now to check these audio ports.
When I try to make some tests with the Apple Pro Speakers, computer hanged up several times.
Will come back later after hardware tests.