So, as an update, I gave up trying to avoid Chi-Fi and bought a Denafrips Pontus II DAC. This has an I2S over HDMI that is compatible with the I2S output of the UltraDigital. Although I could just use USB from the UR into the DAC, this way I can use the UD ( I did pay for it!), and some feel the I2S sounds better than USB. Of course, USB is still in use from the UR to the UD. As the system has broken in, things have improved steadily, to the point where things sound really good. I would still like a little more warmth and smoothness, but maybe that will come with more break in. I also put a small dip at 3kHz in the digital chain by using the Roon DSP. This seems to help a lot without messing anything up.
Meanwhile, after speaking with Andrew at SGC, I am considering the fiber optical converter bundle, for $350. It is returnable if it doesn’t provide any improvement. I have to wait for funds for this purchase to be available, but I will try to post here if I get this bundle.