no it's the audio version. The dialog is working fine. I've done that just in case if that was the issue. It did not fix it.
This page: http://www.creationkit.com/Bethesda_Tutorial_Dialogue
This line on the page: The game engine occasionally fails to playback audio files saved in the WAV/XMW format for reasons yet to be deciphered. To workaround this bug, FUZE equivalents of the voice assets need to be created. This can be done by converting the source WAV files (when applicable) to the XWM format, and subsequently to FUZ by pairing them with their LIP files. More information on the conversion process may be found http://www.gamesas.com/topic/1347417-dialogue-troubles/page__p__20346206#entry20346206.
The link http://www.gamesas.com/topic/1347417-dialogue-troubles/?p=20346206#entry20346206
I followed that link. sadly, the links are old and broken. I am able to convert them to XWM, but I have no idea how to make them FUZ by pairing them with LIP files.