Im just going by what was written here. JustJones said the distortion went away after lowering the 658 volume. Went away, not got lower. That sounds like clipping.Are you basing it on measurements you've seen here or on their specs? Can you illustrate so that I understand how to look at these things?
You could compare the input sensitivity of the McIntosh to the preout voltage of the 658 to see if there is a mismatch. Its not uncommon for outputs to overload or "clip" an input and cause what is referred to as a distorted sound
Is this due to a malfunction of the C658? I dont know