An inplace upgrade is different than a reset using cloud download.
Thought the issue could be a physical damage to the audio port.
An audio port has a metal strip in it which is pushed sideways when a headset is plugged in. This cuts off the connection to speakers and instead send the audio through the headset but if this piece is broken or bent inside the audio jack it can cause a problem similar to the one you are having i.e. no audio though port or speakers but audio through external monitors since they utilise a seperate audio path.
Give the inplace upgrade a try so any windows related issue can be ruled out which would mean the issue is with the hardware side.