I had request to measure with S/PDIF so I choose to use Toslink to avoid any chance of ground loops and got this:
What??? Noise floor goes way down but harmonic distortion -- especially third harmonic -- shoots up resulting in much lower SINAD of 78 dB.
Let me spell this out: there is only one DAC which converts digital to analog. Whether you feed it with audio samples extracted from HDMI or Toslink, the final output should be very similar, sans noise and jitter which could be source specific. What we are seeing is radically different
analog distortion profile. I don't understand how this is possible.
To rule out any changes, I immediately retested HDMI and got the same better performance as I have shown above.
Maybe there is some processing going on here but why would it be specific to Toslink and how would it add non-linearities this way and nothing else? Notice how the levels are almost identical to HDMI input.
I plan to investigate this more. If you have some ideas, let me know.