Well of course it doesn't switch res ;) The original loads from bootsector and never touches any TOS routines (besides a very neat trick of copying code from ROM into RAM and modifying for hard disk purposes, IIRC, but I digress)
I was notified of the problem of loading disks by someone else so at least I know it's not only on my system - but I really can't get Audio Sculpture to display a file listing in Hatari STE mode (and I've now tested with both v1.8 and v1.7). I do exactly the same steps as on the real hardware next to me - where it works. The mouse cursor never changes to the "clock" - and "????? bytes free" is immediately displayed (and the change to Volume name doesn't happen).
Since it works on your system I have no explanation for why it doesn't here. Also, STF mode being fine means it's difficult to come up with a probable explanation that involves external factors as well.
/Troed