As others have said, the M3/4 will use a microphone in the engine bay to amplify sound into the cabin via the speakers. So basically a live concert of your engine. Why? Because BMW owners do want to hear some engine note, but do not want to hear road and wind noise.
If the Bimmerpost video riding in the prototype M4 with Bruno has any lick of truth, the system will sound damn fine in the cabin. That said, there's always the option of discounting the microphone.
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