After spending some time with microsoft tech support on the phone and in store. Here is the reason why HDMI audio is not working for everyone.
First, there is nothing special about the hdmi plugging on the surface. The source of the issue comes from the angle of the plugging. Because the side of the surface is angled at 22°, most of the hdmi cord wont be plugged all the way resulting in the
loss of sound. This is where microsoft accessories comes in for only $39. it is an adapter that transform a 22° angle into a regular 90° one.
What other solutions do we have? Either find a lucky hdmi cord or force you way in. I personally gave in and got Microsoft accessories in order to preserve my surface.
Welcome to business 101. We dont make money with tablets, we make money with accessories and apps.