Soundfile not working

[Daemian]

I think your problem it's you are calling the first music with PlayMusic and the second with PlaySoundAtEntity, being the last one considered as sound. So it doesn't care if you have music on.

You should use PlayMusic again to make it override the first one depending on priority.
And it's not looping because it tries to random another file and it fails.
(I'm guessing, you should test)