But yeah, as mentioned, a building with decent insulation can contain the noise. A flimsy cottage, probably not.
Background noise is the motors for the tone generator, probably the cable compressor too. The louder noises are the call routing and reset. Background noise would normally be a fair bit louder - I'm guessing he had mic right up against the rack for this.
Or a town exchange: https://youtu.be/xUOh9fCSgqw
Towns had much larger exchanges, and they were loud. Probably enough to have hearing loss if you worked there. Only visited one once, decades ago.
Also had a distinctive smell - machine oil, burnt electrics (50v), solvents. Lovely.
I think somewhere on textfiles.com there's a file by possibly kelticphr0st about those buildings.