The inverse square law (SPL falls off with the square of
distance) applies only to the direct sound. In a room,
there are two primary components of the sound field: The
direct sound, and the reflected or reverberant sound.
Unlike the direct sound, the reverberant sound is just about
constant in SPL (approximates a "steady state") throughout
the room. Up close to the speakers, the direct sound is
louder. Then as we move back, the direct sound falls off in
SPL according to the inverse square law, but the reverberant
sound stays just as loud. At some distance they become
equal in loudness, and then at greater distances the
reverberant sound is louder. There is some continued
falloff in overall SPL all the way to the back of the room
as the direct sound's contribution gets weaker and weaker,
but that falloff is asymptotic rather than linear, with the
reverberant field setting the lower limit.
(I've made a few simplifying assumptions here, such as
ignoring room boundary effects, lumping early & late
reflections together, and glossing over the transition zone,
but the general principles described are valid.)
Duke