Hey Dan Rice,
Thanks for that tip. By selecting Listening To: Desktop Speakers first, then the output device, all seems to be okay 🙂
@es0phagus, Dan Rice
I can also confirm the issue with iTunes skipping/stopping the audio for about a second. Just tried it out of curiosity, set my display sleep to 1 minutes, turned OFF iTunes notifications. Let the display sleep, but when clicking the trackpad to wake the display, the audio skipped/stopped for about a second. Same result using my MacBook Pro internal speakers and my external speaker.