After looking at the Mac specific instructions, I noticed this. Looks like everything displayed on the front is normal and expected.
I may try a hi-end USB cable and see if that changes anything. Will also most likely get that Matrix Audio X-SPDIF 2 and compare results.
"Hardware Setup
- Power up the MC-3+USB via the switch on the rear of the device.
- The MC-3+USB has several modes of operation, but for audio re-clocking you need to set it to »INTERN« & »RE-CLK«.
- Press the MENU button once (LEDs flash) and use the SELECT button to cycle through the MODE menu until the top (INTERN) and bottom (RE-CLK) LEDs in the MODE column both light up.
- As a result the top three LEDs in the REFERENCE menu should light up at once as the default setting and indicate that the USB input has been selected as audio input."