The sound doesn't move or change volume as other players move away or around me (this is the situation for all of us), is there any setting or option I'm missing?

The mod should work as proximity voicechat does, voices moving along with the players

Minecraft Fabric 1.18.1 voicechat version 2.2.8

(mods being used at the same time)
Origins, Origins Classes, Advanced Netherite

Please visit the Discord if you need help. I'm pretty sure this is not a bug.