The sharp increase in distortion at as you get to closer and closer to 0 dBFS is bothersome. For my youtube videos for example, I attempt to get as close to 0 dBFS without of course going over. Recording 10 dB lower to avoid distortion would mean softer playback for viewers/lower dynamic range.
The only limitation here needs to be 0 dBFS. Anything lower -- just like DAC testing -- should be optimal approaching 0 dBFS.
For professional broadcasting (and, therefore, for professional equipment), there are standards specifying the target levels.
Most used were EBU R68 and SMPTE RP155.
They specify the target Alignment level (average level, somehow) for recording and broadcasting digital audio.
EBU R68 standardizes alignment level at -18dBFS and 0dBu (0dBFS is then 18dBu), while SMPTE gives -20dBFS and +4dBu as a target (0dBFS is at 24dBu).
Again, alignment level is somehow an average level, so peaks may be much higher, which is why it's specified with such a margin.
Note that EBU explains this level partly because they want to keep any "True peak" (so including any intersample over) below the digital 0dBFS.
A basic description of those standards may be found here:
https://www.soundonsound.com/sound-advice/q-what-are-reference-levels-digital-audio-systems
You'll see that, in professional world, the analog section is supposed to start saturating way beyond the level where the ADC reaches digital saturation.
Non professional interfaces are often using an alignment level at -10dBV (0.3V), so 3V (around 12dBu) seems a reasonable 0dBFS target for those.
Nowadays, standards are more targetting to keep apparent loudness of a program at the same level, and are therefore using LUFS as reference.
See as an example EBU R128.
(
https://tech.ebu.ch/docs/r/r128.pdf)
Of course, all this is meant to standardize the apparent level while always keeping the signal peaks free of distortion, so when testing equipment you'll want to use a continuous signal with level at or close to the maximum level (0dBFS).