Rather than saying there is ‘no correct answer’, one should likely say, ‘there are several correct answers, just not a one size fits all answer, for every scenario.
Gain is the item to be corralled or administrated. Too much at each intersection, source > pre. Pre > ap. Adds up. Ends up too now and then, not necessarily being the optimum solution.
As was said previously, that source makers suggest strongly that the volume on a DAC should be at or above 75% to avoid drop outs, from that point is where one needs to find their system synergy or sweet spot in overall system gain.
Bel Canto said something quite similar to me on the BC DAC 3 I own. I was told keep the revs up to 100% when its being used as a line source wherein another controller is adjusting the volume.
I forget what was said in the scenario wherein the BC D3 is being used as a preamp driving the amp directly..
It would seem one solution alone is not correct either. Though two, actually do appear to be able to accommodate more particular situations.
I followed orders keeping the vol up to 100% for the first two weeks during playback as a line source connected to a preamp. I got edgy about so doing and finally gave in lowering the overall steady state output voltage a tad to 95%. Emphasis on leading edges came more into line, yet articulation and resolution did not suffer further. So it remains at 95% whenever I fire it up to play from the HDD library or stream online whatever thru it. It does not remain on constantly.
I can see too, if someone is running lengthy legs of ICs voltage could drop significantly and cause distortions or drop outs of info depending on the source output voltage. As.. higher gained output voltages could with stand longer RCA IC runs.
I get the impression with todays' DAC which double as preamps or have volume controls volume attenuation takes place in the analog domain, not in the digital domain where it is more critical.