Reproduction steps: Opening any menu while any BGM is playing will silence the BGM entirely. It's been a while since I last played Coral Island, but I don't think this was how it behaved back then.
Reproduction rate: Always
Game Platform: Steam
Game Version: 1.2-1238
Input Mode: KB/M
Not linking a Save File since it happened on all three save files I have - one of them made on 1.2, the other two from previous versions.
If this is how indeed the game should behave (if intended), then I apologize for the report. Still, it would be nice to have an option to allow the BGM to keep playing when game menus are open, even if muffled.