I remember this literal bargain bin publication PlayStation game that made brilliant use of MIDI versions of Frederick Chopin and Eric Satie for pretty much all its soundtrack
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Music can be tricky because while the song may be public domain the recording of a specific performance may not be. That said, the Library of Congress has a lot of public domain audio that is fun to poke through!
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In this particular case, I'm pretty sure it was in fact public domain music sheets inputted into a MIDI composer program, and not live recordings (which as you said, might have licensing issues of their own)
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