It is totally a design fault/error, should there be any rectification from a responsible manufacturer ?
Who knows. I don't think SMSL may do a recall program to change this model to a new one that doesn't have this issue and other glitches/design errors that this DAC has. I don't think either that SMSL does a firmware update that may solve, or not, as not all issues/glitches a device has may be fixed with a new firmware.
I bought my DO300 from Amazon Spain and I think if I push their customer service I may get a refund.
Maybe the SMSL DO300EX doesn't have this kind of issues and its I2S input works properly, or maybe it has. I honestly don't know what to do, if taking the chance with the SMSL DO300EX, that uses an AKM IC DAC, and if I like its sound and the problems with the DO300 have been sorted out, or keep the DO300 and use the S/PDIF and DSD over PCM. I don't think using DoP by its S/PDIF input may degrade DSD's sound quality compared to I2S at this price range.
I don't know why Chinese and other DAC's manufacturers adopt standard HDMI inputs. I know if they use HDMI ports they'd have to pay a royalty for its use to the company that developed HDMI. By using I2S manufacturers they have to pay two royalties, one for using an HDMI port, and to PS Audio for adapting/developing I2S using an HDMI port.
Using an standard HDMI port on a DAC would bring several benefits, one is using a way to connect a transport or an HDMI audio-only player using a copy protected connection following Sony's mandatory SACD/DSD playing, and one that has proved for many years to be fully reliable.
And second, It would save us the use of Chinese off-brand HDMI audio extractors that may not be fully reliable.
Just to finish, I get as a conclusion that these new Chinese brands are a hit or miss. When properly designed they offer great performance at an unbeatable price, but sometimes they put out on the market products that are either half baked or plain faulty by design, without a proper customer/product support.