Forgive me if I'm confused, but going back to the beginnings of this thread, it was about DVD and not Blu-ray. Not sure why I'm being attacked for suggesting to output "MPEG-2 DVD" to create two files, .m2v and .wav (on Mac it might create .aac audio). An MPEG-2 DVD export from Premiere will create the chapter info (CS6 and older), which Encore will use. Dynamic Link not needed for this.
I've authored HUNDREDS of DVDs over the years using the export "MPEG-2" DVD method and have always had audio. That is how Encore likes it - two separate files, never muxed. I think one of the earlier posters was using .wmv source files which is quite odd and that might have caused an issue.
EDIT: just re-read your post and I get it, YOU are making a Blu-ray. That's great. Then of course create a Blu-ray compatible file, MPEG-2 or H.264 variety, and not MPEG-2 DVD (don't want you getting sued). But back to the audio issue, in Premiere should not have to "render audio" first in order to get audio when you export. You are digging really deep down into the guts of Premiere with all the XML and cache talk and I don't know why. Stuff ought to just work, and always has for me - since Premiere 6.0 over a decade ago. Just seems like this is being over-thought or your installation has some weird issues, sorry it is not working normally for you but please don't tell me I'm doing it wrong ;-)
Thank you
Jeff Pulera
Safe Harbor Computers
