Thanks for all the feedback everyone. My source is a PS Audio DirectStream Jr DAC with Tidal. The distortion is not necessarily in the recording, but I’m pretty sure its not a bad driver. Gonna get a bit specific here, but I can hear it in the louder passages of Caroline Shaw’s No. 2 Sarabande on her album Partita for 8 Voices (an incredible recording of her Pulitzer Prize winning album with Roomful of Teeth). Towards the beginning one of the sopranos on the left of the soundstage raises her voice a bit and the sound distorts. When I switched the speaker cables I heard the distortion on the right speaker, so its not the driver.
On reading your responses, I thought maybe I have too much gain coming from the DAC (I usually run it at 100 % volume and use the volume on my Leben to increase and decrease the sound), so I turned on the analog attenuator on the PS Audio (which drops the signal by 20db) and that definitely seems to have helped. I now have the volume around 10:00 for normal listening levels, and I found the sound overall got better - maybe its due to a few more watts pushing through my system when I’m listening at normal listening levels? I definitely heard a change - just a bit more depth of soundstage, fullness in the sound, clarity. But maybe just a slight bit of decrease in dynamics (though not as peaky which Zu’s can be from time to time). So I may have fixed the problem. However, when listening to classical tracks, it seems I may not be able to get the volume I want to really feel that immersive experience. Still playing around - gonna see what happens when I turn the attenuator off and just lower the DAC volume to around 70%.