Hi guys,
@Fosi Audio, I can confirm that the firmware update (from v1.04 to v1.06) did not fix this sonic issue (glitch/echo) for me.
LG TV HDMI ARC to Fosi ZD3 HDMI input > RCA output to amp.
Day two of listening to/using it after the firmware update and I heard that glitch/echo on both days (once in about 2 hours of listening).
HDMI-CEC issues still persist too (turns on automatically some 15-20 seconds after I turn the TV off; doesn't stay switched off unless I change the ZD3's input to something other than HDMI; doesn't let me change the sound output on my LG TV to something else (internal speaker, optical, bluetooth) if the ZD3 is on and connected via HDMI).
I must definitely add that the Fosi Audio support team has been really good. Very responsive, very understanding, very helpful and genuinely seem like they care and want to help; unlike the sad state of affairs with most modern day tech and electronics companies.
When the ZD3 works, it's really good. The sound is way cleaner, clearer and well separated compared to the DAC I had before.