It sounds like Cambridge Audio designers did not know about the USB noise problem, but it still exists. Fair enough. But they absolutely knew that the distortion on the RCA out becomes inacceptable above 1.5 V and still permitted the user to run the device like that. They could just have limited the RCA out to 1.6 V or so and everybody would have been happy.
It's very common for consumer audio (pre/integrated/power) amps to have a volume control that allows you to overdrive any of the outputs (speaker/line/pre out). The reason being they provide ample gain to support low level input signals, especially with devices with analog inputs. In consumer audio signal levels are not always standardized (or standards not respected) to the same extend as in pro audio, and signal levels cannot be monitored as well (peak meters that can monitor all in and outputs).
According to the CXA81 specifications Cambridge follows the traditional -10 dBV standard, being 0,3 V rms, for the line inputs. The problem is, in consumer audio there's no standard for preamp ouputs, or the inputs of devices you typically connect to them like a power amplifier. If you look at the spec's of the Azure 851W power amp you see Cambridge uses a sensitivity of 1,5 V rms, the limit of the CXA81 preamp outputs. So within the brand the levels are consistent.
Want to connect another amplifier to the CXA81, say a popular NAD C298? Input sensitivity 1,43V rms so no problem. Maybe a Krell Duo 300 XD? Oops ... , an input sensitivity of 2,4 V rms. Let's look at Asia; a Technics SE-R1 power amp, input sensitivity 1,2V. Between the Krell and the Technics there's a difference of almost 8dB, and we expect this all to work together flawlessly (or without consideration)?
And it can get worse. Some brands don't even specify the input sensitivity. Want to connect a REL or SVS subwoofer? Good luck, ... no input sensitivity to be found.
So this whole gain structure thing is a general problem in consumer audio.
Note: when it comes to the digital inputs we see that even when the preamp output is limited to 1,5V the CXA81 provides 18 dB dynamic range (108dB), which is perfectly fine. It confirms the 1,5 V preamp out level is a design choice and not a screw up. We've seen other examples over here.