I was using volume applet in the upper panel. I ran "gnome-sound-properties" and by playing around and ticking "Enable Software sound mixing (ESD)", I was able to restore volume keys function.
Problem solved! Thank you for pointing me to "gnome-sound-properties". The thing is, how come "software sound mixing got disabled?" Thank you for your concern! -- Regression: Sound volume hotkeys stopped working https://launchpad.net/bugs/84760 -- desktop-bugs mailing list desktop-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/desktop-bugs