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It's rude playing music when you're talking with someone. It will keep distracting you no matter how much you reduce the volume. They go off when I want to communicate with someone.
I used to play music while talking to someone. My own way is that I will reduce it to the bare minimum so that the person won't see me as a rude person, I will only nod my head as the music is playing but if the conversation is more interesting, I will pause the music totally.