I just tried it and get the same results as you. Where the time freeze is, the audio is "buzzzzzzz" until the cursor moves past it.
There is a workaround. Split the clip (Razor or "n"). Click on the time freeze clip. On the timeline toolbar, select "Display Audio Mixer...". Once you do that, you can take the green line in the time freeze clip (the audio level) and bring it down to the bottom.
The clip plays back without that horrid buzz sound.