What brand is it? Deublin?
Depends on the model. Our fancy machine with air thru the spindle has a spring loaded seal (which are carbide faces, by the way) that only goes forward when backpressure from the thru spindle coolant is present. When no coolant is coming in, it springs apart so no contact is made.
It could be damaged.
I would pull off the coolant supply, see how dirty it looks. blow it out if dirty. Could squirt some oil in it and see if that helps too.
Or like you said, could be sound from the flow of coolant going thru some chips stuck in a fitting. I hope you run with a filter bag for your pump.