only fishing the wire a few feet? For example I am wall mounting 3 monitor audio R250s around the plasma, the left and right R250 would only run approx 4 foot in the wall, distance from the speaker to the floor where it will exit the wall behind the baseboard. So at most, vertical 4 or 5 feet. And then the center R250 will be about 3-4 foot since it will be under the plasma.

Reason I am asking b/c once they come out the wall at the floor I plan to run them down along / behind baseboard to the rack that will be a good 25 foot run with 2 turns. Obviously normal 12 or 14 awg is going to be easier to flex or maneuver. So wondering is it really necessary to use CL2 if its only going to be 4 or 5 foot runs that will actually be "in-wall". What would the downsides or risks (for lack of better term) be for not using CL2?

Some guys on this forum will disagree but you will be fine. The speaker wire isn't going to catch fire because it is behind 1/2 of drywall. It will not void your home insurance contrary to popular belief.

To satisfy code, you need to run the approved wire -- no matter the distance.

It all depends on what your code is.

Each state's code is potentially different.

And its not about the wire catching on fire because its 'in the wall'. Its about, the wire's insulation being ignited by a house-fire, and that wire then burning along its length to spread the fire in the wall cavity. Thats what you want to avoid.