Why does FaceTime Audio sound better with mute on?

I ll FaceTime Audio call my girlfriend from my iPhone to hers at night. When it's quiet like if she falls asleep, I can hear her for a bit and every now and then it gets silent. It's not because she stops breathing it just happens. When I hit mute on my end though, I hear everything and the sound never drops even for a second. Why is it that with mute?

Maybe it's got something to do with the noise cancellation or something

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