rollin:
dW will change as the paddle is swung, because that is work. The internal energy of the system will change as paddle impacts bottom because the energy has to go somewhere. This results in the positive change in heat, dQ.
The sound energy produced is undoubtedly solely derived from the laws of thermodynamics; however the heat in the seat felt by the recipient is probably mainly derived from chemical intermediaries in the cells as damage occurs. Some will be produced from the conversion of kinetic energy, but I suspect most will be due to the extraordinararily complex set of internal chemical reactions produced by the blow and the consequential nerve reactions.