Do you have the DragonFly directly connected to your Mac? That’s not the way I normally use either of my DragonFly’s, but I plugged my DragonFly Black directly into my iMac, and with exclusive mode enabled, I could get a bitperfect signal path if, in the General tab of Device Setup, I set the Volume Control Mode to “Use Device Controls”. Somewhat counterintuitively, this control mode will let you control the volume from Roon or a Roon remote while maintaining “bitperfectness.”
CAUTION: The DragonFly Black had a ton of gain with the settings above, and the Red should have even more, so be careful!
And +1 on updating the firmware.