For some reason, the alarm plays at the player's position instead of the position of the alarm. This also means that there is no falloff when the player moves away from the sound,

• Results in no sound falloff (abrupt stop when just out of range and vise versa)
• Sound will appear to your left when you move right briefly before playing again at your current position

The sound should be playing from the position of the alarm. This would result in proper stereo sound and falloff when you move away from the alarm.

(This video is best experienced with stereo headphones on)