[micazoid]

7 Means that Admins can see chat from other Admins, Fake Clients and all, when sv_alltalk is 1

Just set it to 0 and you are fine.

Updating is always a good idea, especially if you are running CSgo (I am aware you do not ^^ ). But you just need to update gamedatafile.

In your Situation I would try to set sm_adv_admin_vision to 0 and then check if all works