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This paper applies Direct Preference Optimization (DPO) to align Audio LLMs for transcribing English-Mandarin code-switching speech, achieving up to 89.6% MER reduction in-distribution and 20% out-of-distribution. It identifies three failure modes—language omission, translation instead of transcription, and hallucination—and shows that preference-based alignment effectively elicits correct code-switching behavior from multilingual Audio LLMs.