This is very strange, since this is similar to another problem that others have reported. Here: Pirate audio no more working - #16 by bablokb
I describe the installation of one of my projects which is very similar to yours. My project does not play wav-files, but internet streams from radio-stations, but the rest is very similar (i.e. buttons for navigation, images for station-logos).
Honestly, I have no idea why this “just works” for me and fails for others. The only thing I am really doing related to the Pirate Audio (fifth step) is to tweak config.txt and then it works.
In your setup, it might be the problem that you are not just using ALSA, but also “higher level” sound-processing - I spotted “jack” for example. And you also seem to have an usb-soundcard with the same driver active (“usbstream”??).
Now this is a simple device, and my suggestion is to remove everything that is not ALSA.