I had an SU-8 with the drop-out glitch with my Samsung TV. Worked fine when directly connected to my PS4. I also had an old HeadRoom DAC that did the same thing. Both have ESS chips, maybe that has something to do with it?
It's really too bad to hear that the M500 has the same annoying glitch. I'll stick with my Schiit Bifrost 4490 until I can afford the RME ADI 2 DAC. The Bifrost has never caused me any problems in the couple years I've owned it.
It looks like China products are quite good at short testing but unreliable in the long run