This question relates to this one:
Why and how can you hear explosions in space in Star Wars?
Among the answers are this one and this one, among others, that simple put, point out that just because we, the audience, can hear the sounds, doesn't mean they exist in universe.
There are entries, like this comment which assert it is something the TIE fighters are artificially generating to make use of more of the pilots sense and give them situational awareness.
But amost all these answers, the point doesn't appear resolved.
So:
Do we have evidence in-canon about whether the characters can hear other ships and/or hear explosions as depicted to the audience?
In other words, are the sounds diagetic ?
clarification: It matters whether they react to the sounds, not how the sounds are generated or get to their ears.