Thank you for leading me to the other thread dealing with the same problem of missing sound. However, there is no solution provided to the problem, just confirmation that the problem exists. It seems to be a bug in the new player version 3.0.2.
So, in summary, we can conclude that VLC does not seem to be able to convert MTS to MP4 properly, right? Using the old version of the player provides correct sound, but defective video, using the new version provides correct video, but defective sound.
Is there any solution to this problem? It would be really helpful.
(Re the size problem: the MP4 is 3 times larger than the MTS; I didnt convert, only saved to MP4 container, as per your recommendation. In addition to the two test files uploaded to Zippyshare (i.e. the original MTS and the MP4 created by VLC 2 version), I have now also uploaded the MP4 created by the new VLC 3 version, where the sound is played in VLC player, but not in Movie Maker. It's available here:
https://www101.zippyshare.com/v/JjXJkfkf/file.html. Maybe, you could look at this file if you wish to test it again)