Haha ... I'l try ...
First of all, the fact that the light lits is not a guarantee that you are receiving bit perfect data (at in your case the Alpha). But with XXHighEnd you can depend on it because, well, I say it is. So, you can use this to determine the other way around : when does XXHE stops to be bit perfect.
Allright. When the digital volume is used, the data just *can not* be bit perfect anymore. Why ? well, because the digital data just *is* changed. It must, because you are just using the digital data to lower the volume. For example, a value of 1000 which is lowered by 6dB will become 500. Simple.
And next, the HDCD decoding notices this, because it expects a 1000 to remain 1000. Notice that this is a way simple explanation of HDCD, but what it comes down to anyway : when it doesn't see the 1000 as 1000, it can decode anymore. So, this is to keep in mind. Light off = doesn't decode HDCD.
Btw, the same happens when you upsample the data. Not because 1000 changes into something else then, but because the position in the sample where the bits are expected, is changed.
Good. Now, why do I say/claim that applying the digital volume doesn't "molest" the data, or SQ if you want ...
(but, do not incorporate change in SQ because HDCD decoding not working anymore, okay ?)
This is because the actual data indeed is NOT changed. Only the volume is "perceived" lower by the DAC. Do note though the DAC needs to be a 24 bit DAC, and the data you apply must be 16 bit data (or 32 vs 24, also good). Now, with a 16 bit DAC and 16 bit data, a sample may look like this :
1001011000101101 (this is 16 bits, and represents the volume value of one sample of one channel).
With a 24 bit DAC, it looks like this :
100101100010110100000000 (this is 24 bits, and the last 8 bits are 0 -> they don't do a thing to the sound, while meant to imply better volume resolution).
Ok. I know I am going to be too simple now, but let's say I don't want to tell everything. But, too simple doesn't mean the next is 100% true :
100101100010110100000000
010010110001011010000000
Do you see what happened ? all bits shifted one position to the right, and this works out as 6dB lower volume. But, everything is there and really nothing is lost ! However, *now* the last 8 bits of your 24 bit DAC chime in, because, well, it just can ! So, there's exactly as much detail hence volume resolution. And because of that, SQ will be exactly the same, no matter you attenuated. And you can do this up to 48dB, which would look like this :
100101100010110100000000 (-0dB)
000000001001011000101101 (-48dB)
And still *nothing* is lost.
Ain't that great ...
Keep in mind though that a DAC is not at its best at the least significant bits (shown at the right side here).
Please keep in mind : the story is somewhat (
) more complicated, but this is the general idea.
Peter