Generally, amateur 2m NBFM uses ~ 3 kHz audio bandwidth, +/- 5 kHz deviation, 15 kHz BW IF filtering and 25 kHz channel spacing.
Because PMR spectrum is crowded in some areas, the "new" NBFM standard used by a lot of PMR gear is +/- 2.5 kHz deviation, 7.5 kHz BW IF filtering and 12.5 kHz channel spacing.
So, off-air receive probably sounds distorted because the 7.5 kHz BW IF filter(s) in your PMR radio will be clipping the deviation peaks of a signal which is 15 kHz wide. You probably won't hear this distortion between two radios "across a room" because at 7.5 kHz away from centre frequency, your 7.5 kHz BW IF filter is probably only something like -40 dB down, so enough IF energy will get through on the skirts of filter to make the FM limter clip and the demodulator produce undistorted audio. You should be able to fix this by replacing the IF filter(s) with 15 kHz ones and re-aligning the IF strip/demodulator.
Your transmit audio will probably also sound a bit quiet (-6 dB down) to anyone receiving you on 2m until you increase the TX deviation to +/- 5 kHz.