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Did I interpret the blue line incorrectly? I thought it was THD 100%? If not, my bad indeed.
Not at all. That would have been crazy poor performance. I think you need to read up on how to understand these graphs.
I guess that blue line is just to make it easier to see the difference across the 86dB and 96dB graphs. You have alternate graphs that show % distortion immediately above the ones you were looking at: