Radios have an “automatic gain control” (AGC). When the reception is weak, the circuit that deals with the radio frequencies turns up it’s amplification to try and get the best signal it can so it can then extract what actual audio it can. When the gain goes up to maximum, all it ends up amplifying is noise, radio interference from outside and random electrical noise generated inside the circuit components. There might be a weak signal hidden in the noise so you may hear a noisy radio signal as well, so it wouldn’t just cut out.
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