As I reported here:
https://www.audiosciencereview.com/...ac-and-hp-amp-review.9606/page-25#post-262986
I own a Samsung TV and have had similar issues with SMSL SU-8
My TV is set to PCM stereo output and with this setting I have had no issues with at least 4 other DACs from other brands. I think, that even if I buy new other DACs from other brands it would work. In the SU-8 thread you can find also reports from people using other TV brands, so I think it is not even related to only Samsung TVs. Maybe some kind of incomatibility between the SMLS and some TV brands / models. Would be interesting to see if the optical input circuit within SMSL SU-8 and M500 is similar. Maybe SMSL has used its SU-8 optical input circuit when developing the M500. This would explain the same issue with both DACs.
It's not about multi channel formats. Like MusicNBeer I've no interest in multichannel and I'm only using stereo which should be no problem for the SMSL. Also the error pattern I have had, does not fit to "feeding the DAC with a multichannel signal". When feeding a stereo DAC with a mulitchannel signal, the only sound you may get is not music, but loud crackling noise. In my case I could here music, I must say with really good quality, but without constant lock, means with playback gaps every 5-10 secconds.
If SMSL is able to fix this issue I would remove the ADI-2 DAC from my setup for the M500. Because soundwise I really liked the SU-8 and I assume that M500 even a tick better.