@Bluespower another way to look at it perhaps: see in Amir’s measurements in post #1, when this DAC is fed a single 0dBfs tone, it produces about -55dB third harmonic distortion.
Imagine we now ask it to reproduce two tones, one at -3 dBfs and another at -60dBfs.
Well, we know that the third harmonic
distortion of the -3 dBfs tone will be at about -58 dB. This is
higher in level than the second tone we actually want it to reproduce!
There can be no hope that such a device is doing a good job in these circumstances. In fact, playing music at or near full level, anything below -55 dB will actually be buried under just the
distortion from anything close to 0 dB in level.
Think about a better performing DAC now, one in which all distortion is lower in level than -100dB. Which DAC will be better at reproducing low level detail or multiple loud and quiet tones at once?