A collection of fixes for Hammers of Fate

No, everything works correctly. Try getting into a boat and listening to the soundtrack.
You just need to wait for the first soundtrack to finish, which plays first and depends on the location.

Added 1 minute ago
In this file, it was indicated that the Academy theme was played on the water.

I opened "Battle for Freedom" in the editor, painted the starting area River-bed with a texture, and from the start, the Orc plays the Academy music; I got into a boat, and the Academy music plays. I did it as in your fix, and from the start, on the sand, the water music plays; I got into a boat, and the water music plays.