Played this again. If you get seen your dead. No chance of escape. If there was sound of Elmo's voice when you leave the house then it didn't play for me and after 3 or 4 deaths the radios just didn't spawn for me anymore and that was even after I totally restarted the game. More bug fixes needed. :)
Okay so Freddy is supposed to catch you, like he's supposed to be fast and you can't out run him, so you have to kind of stealth it out and make sure he doesn't spot you or else you're dead, there isn't supposed to be any sounds for Elmo when he talks, and the radios always do spawn. It can spawn in one of five places, 1. the alley by the apartments, 2. in the alley by hoopers store, 3. in the same alley by Hoopers Store but all the way to the left, 4. in the laundromat, 5. in Hoopers Store. You probably just missed it. ;) I may be wrong though, maybe the game could've bugged out, who knows. But thanks for trying the game again.