First off, thank you for updating and releasing this for v1.2.2 pizzaoverhead, your efforts are much appreciated!!
Ok, now for the problems after I installed the mod last night (mostly the same as others have reported, hopefully all here in one post for you)...
Soundtrack from KSC main (birdies) carries over into the next building you go into...for example the VAB or SPH. Once the soundtrack from KSC main ends, the VAB soundtrack begins but it does not loop or go into the next track (you get silence after it finishes and does not 'reset' until you exit and come back into that building again). Same occurs in other buildings but I did not test all of them.
In the VAB (or other KSC buildings), you can go forward, backtrack, etc on the current track, but you cannot skip to the next track...even if you try to, you still get the current track being played.
After a while (once the music has stopped playing in that building), you can no longer go forward/back etc...none of the buttons work anymore, and you can't get the music to start playing again unless you exit and re-enter).
Looping and shuffle do not seem to work but this needs further testing.
As mentioned by others, no music in the main menu.
I did not test in space as much, but it seemed to be working ok....problems seem to mostly be with the buildings at the KSC.
I apologize as I am at work and cannot provide my playlists.cfg or output_log.txt but can do so later tonight (PST) if it would be helpful....please let me know.
Again, love the mod so hope you can get the gremlins worked out. I will be happy to re-install and help test out....as long as Jeb behaves.