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.