Ken Rockwell measured the audio output of them
HERE.
Where do you think they’re defective?
My first thought was it’s an airplay issue, but the RME is also fed a digital signal from an AE over airplay. They are all also on firmware 7.6.9
I would recommend downgrading to the earliest firmware available for your devices (they don't allow downgrades beyond the version they shipped with).
Thankfully you are not on the AirPlay 2 firmware (7.8.x) because that absolutely
destroyed the analog output performance.
I can only speculate that they were asking too much from a limited SOC.
I have three of them here as well, and as soon as I installed that update, something sounded wrong.
I only did limited testing, but it was enough to stream a 1kHz tone from an iPhone and see this:
This video shows the output from an AE2 connected to a Behringer UMC22 interface, which was then connected to an iPad running an "Audio Analyzer" app for the FFT.
Though 7.6.9 performed better than 7.8.x, the earlier I went, the better the performance seemed to be (though perhaps only slightly).
I tested the three devices that I own, and they all behaved exactly the same. I suspect that their performance got progressively worse over time, compared to the state they were released/reviewed in.
The AirPort Express devices
were great for their time.
Back in 2004 there was nothing widely available and affordable that was streaming lossless CD-quality audio around the home - especially with a digital output.
The 2012 update was a modest improvement to the analog output, but they aren't the greatest DACs - especially when running updated firmware, or when compared to what you can get today.
I don't know about you, but when I set them up with active speakers, I'd end up adjusting the amp volume to the maximum level I'd ever want to listen at, and used the source device (phone) for volume control because it was more convenient - since control is on the back of both speakers.
So I got extra amp noise from the gain being turned up, and reduced SNR from the digital volume control - which was really kneecapping the performance of the system. It ended up well below 16-bits.
And the other issue is that even after the AirPlay 2 update, the digital output is still limited to 16-bit on these devices (other AP2 devices can support 24-bit).
So even if you accept that the analog performance is limited, and wanted to repurpose them as a digital transport for an external DAC, it's probably going to limit the performance of whatever you connect to it - and nearly everything is moving to USB now.
I suppose that is still enough for lossless CD-quality playback, if you don't touch the volume - and that might still cover most of a person's audio library.
But these days, I'm used to having volume leveling enabled in the player, and using DSP like EQ or room correction.
It's also just nice being able to control the volume via the phone than getting up or looking for a remote. And 16-bit doesn't really allow for that.
Running into some networking issues with them recently pushed me to look into replacing them.
And I've found that even a $15 Raspberry Pi Zero 2W is enough to do that (if you can get one right now).
Not by itself, but it can connect to any modern USB DAC and act as a Roon endpoint (or AirPlay/Spotify/DLNA) via RoPieee (XL), streaming up to 32-bit 192 kHz rather than 16/44.
With that, there's little concern about using features like volume leveling, room correction, or digital volume control from the source.
Pairing it with something like a Topping D10 (S/B) should be a considerable improvement for about $100-150 depending on whether you want the balanced output (I would).