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How does the serpentine belt look? Worn belt could squeal, and it makes sense that the AC engaging making it worse. If the belt is slowly disintegrating it could be throwing rubber dust around, making it look sooty. Also check all pulleys while you're at it to make sure none are seized/hard to spin, especially the idlers and tensioner.
Edit: now that I actually listened to the video it's not belt squeal. Sounds like engine load dependent, so turning on the AC would make it worse. How are your engine mounts?
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