I'm pretty sure you'll find that your CO trunk connection is ringing into a device such as an auto attendant before going to the final destination...it may not say anything, but it either provides day/night scheduling or listens for DTMF for routing. Regardless, this is the device you need to fix hold music setting on, change to RING.
When the call finally rings stations, what does the second line of the display say? Maybe XFR FROM or FWD FROM? If so, that's the name of the device you're interested in. Warning: call may pass through more than one device as it progresses, and any of those might be flagged for hold music.