Apple IIGS Tech Note #95 explains the diagnostics test:
AA = 0C
DD = 01: RAM data error
02: RAM address error
03: Data register failed
04: Control register failed
05: Oscillator interrupt timeout
In your case, the problem is a control register failure, specifically a bad sound chip. Since the sound chip is not socketed, you will have to replace the logic board of the Apple IIGS.
The following Tech Info Library article can help you find the Tech Note mentioned here:
Article 24493: "
Apple Tech Notes: What They Are, Where To Find Them"