This feels like a hardware issue. You might want to try reaseating the HAT to make sure it's secure,
and perhaps check the soldering looks consistent along the 40 pin header.
Thanks for the suggestion. I dis-assembled my Pi and re-seated the hat onto the header. Unfortunately the problem persists.
My current work-around is as follows;
1. Turn on Pi
2. Boot into LibreElec (no sound)
3. Shutdown
4. Turn on Pi
5. Boot into LibreElec (sound working)