My mother would hear music. It didn't upset her. She would see people, too, which I found frightening but didn't bother her. Odd because Mom is pretty fearful of most everything. I would ask her to describe the music, or ask if she knew the people she was seeing? Are they friendly? Are they talking to her? Who knows... in her mind they were real, and who doesn't like music. Mom was a piano teacher in her real life.

My husba d has have "in invisible" friends for a while. Some days he talks only to them. It doesn't bother him and seem to benign so I dont worry about it. However, if it becomes disturbing there is medication that can help. Do some research as some medication can affect the elderly differently.

I would get another opinion.
Check with a psychiatrist on medications that might help her. Especially because it is bothering her. Fear is always such a factor with people who suffer from Alzheimer’s, so keep asking. Remember, not all doctors are created equal, there are some out there who have more experience these types of symptoms. Good luck. You are not alone.

Thank you.