Audio from Clip isn't Dragging to Timeline

When I drag a clip from the Project window to the timeline the audio doesn't come with it. I have the source patching button A1 enabled but it still doesn't work. When I play back the clip in the source window I hear the audio so I know it's there. When I remove V1 to just drag in the audio it works, but it has diagonal lines through it and I can't hear anything. 

What's going on here and how do I fix it? 

Thanks.