Not being able to follow conversation in background noise is part of it and even worse if the background noise is others talking.
Some of it maybe a lot of it has to do with the fact when Vestibular Damage occurs the ability to multitask or follow several processes at once decreases in proportion to the level of damage or Vestibular dysfunction. See if this makes sense. COGNITIVE ASPECTS OF VESTIBULAR DISORDERS
The survival portion of the brain the primitive part that demands you respond to danger can trigger Panic Attacks or even Phobic behavior. Let's take the fear of heights. True Phobia? Likely not here's why. The brain is constantly running it's own checks and it knows your limitations. Persons with Vestibular Damage often also have balance and coordination issues.
Here's an example. If you lets say go up on a roof the uneasy feeling sets in. That is your brain telling you hey you are in danger. The brain much like a computers processor also has a limit as too how much data or how many task it can process at one time without a crash or freezing up. The crash can be a Panic Attack or one worse.
The crash can also possibly cause you to go into what I can only describe as about a 30-60 minute fog where reality or sense of where you are, why you are there, how you got there, how long you've been there, etc takes a short vacation. First time it happened I thought I was having a stroke. It can happen lets say driving down a road you know real well. The onset is sudden and can last seconds or one I had lasted a couple of days. It's sensory overload. The processor is damaged LOL. The brain has to do Diskcheck and reboot.
I had an inflamed nerve in my foot and the doctor gave me a prescription for Motrin.
It didn’t bother me when I took it, but when it wore off I had complete amnesia for about an hour. Couldn’t read or even recognize numbers. No clue who I was or were I was supposed to be. Weirdest feeling I’ve ever had and one I never want again. So I know where your coming from.