Static/crackling when headphones connected and Hi-Fi DAC is enabled

I posted this on Reddit, but I think I might get better traction here.

I just picked up an LG v10 and when I got home, I did a factory reset.

I loaded up Google Play Music and plugged in some headphones. Things sounded fine... until I enabled the 32bit DAC (Hi-Fi). I almost blew an eardrum. It was static, nasty distorted sound and crackling. As soon as I disabled the DAC, it went away.

I tried 3 different pairs of headphones (Sennheiser Momenum On-ear, Fostex T50RP and ATH M50x) all with the same results. I began texting the seller to work it out when the next track started and things were fine!

I toggled the Hi-Fi on and off several times and things were good. Next track, a little crackle, then fine. I get a bit of crackle on track switches. I jiggled the headphone jack and it skipped to the next track, the gave the nasty crackling again. Pause, then play.. burst of static then fine.

I am pulling the battery now... same result. I am going to make sure i have all current updates, then do a factory reset. But need help identifying the problem. turning the headphone plug results in no static.

I have tried GPM, the stock LG music app, Poweramp Alpha, and all of them exhibit the same results.

Here is a link of the audio. I warn you now, TURN DOWN THE VOLUME!
I recorded without the DAC on, then on. I then tried to turn the volume down, then turn the DAC back on.

https://drive.google.com/open?id=0B0...TRDYWVtbjNZY28

Thanks for any help anyone can give.