VLC for Windows Phone has received its first update and fixes the audio bug which had made it virtually unusable. The latest version is 2014.1208.1435.1366. VLC Beta app arrived on Windows Phone store after long wait and became available for those who could register for its Beta, but the audio bug took away the fun.
Now, this update fixes the audio bug, but still the audio stops when screen gets locked or you send the app to the background. VLC team may like to note of these complaints too.
If you are a registered Beta tester, you can go and check for the update on your devices.