Anthem STR preamp "Convert Audio" sounds bad compared to not using

I’ve spent all afternoon playing around with different settings with subs etc. On this preamp, there’s a setting to “Convert Analog”… This allows you to use the ARC and subwoofer outputs - hence you get to use the internal crossover, phase etc for the subs… Really nice feature. I’m not even using ARC yet…

But, I noticed a significant improvement in quality and dynamics with it OFF, allowing my Lumin T2 to flow straight through the Anthem. It’s louder by probably 3db too (not measured).

I have not heard of any audiophiles more picky than me mentioning this.

I’ve asked this question before about connecting the Lumin T2 this way… Am I negating any T2 dac magic by sending it through the Anthem’s dac engine? I was told NO. But it sure sounds like it now!

Again, I’m not using ARC yet, maybe that’s where I’ll hear a significant improvement but as for now, I like running my subs from the preouts (giving me no xover so speakers play full bandwidth).

Anyone in dallas want to come teach me more about this?