VLC Error Message: 'Audio output failed'

I've recently installed Ubuntu 16.04 and I'm having the following problem:

Whenever I open a file with VLC, I cannot hear anything and an error message popups with the following:

Audio output failed:
The audio device "default" could not be used:
Connection refused.

Other media players work fine (SMPlayer for example). Any suggestions?

Certainly if there is sound working in other media players there is obviously a local problem with sound in vlc. Two suggestions that should fix the problem to try in order:

1. Reset the vlc config to defaults by running the following command:

   vlc --reset-config --reset-plugins-cache
   

   This may be enough to rectify the issue but if not try the following:

2. Follow this path in vlc:

   Tools >> Preferences >> Audio >> Output >> Output Module
   

   And select a different 'Output Module' from the drop down box. This screenshot illustrates the choices under a default vlc installation on Xenial Xerus:

Some experimentation may be required with these options until you find a happy option that produces sound...