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It should indeed sound distant and muffled with the composition and temperature of Mar's atmosphere. Saw a neat pseudo-documentary on this not too long ago: https://youtu.be/OeYnV9zp7Dk?t=551

Kind of ridiculous to demonstrate what things sound like while playing eerie random background music over it.

Yeah, I thought it sounded like flanging.

Why would it be compression artifacts when they are also sending hires video signal?

This page has some simulations:

https://mars.nasa.gov/mars2020/participate/sounds/