DSDAC MKII with volume attenuator (Passive Preamp) Click noise

I’m using a passive preamp attenuator to control the volume of the pair of Genelec active speakers (8331A).

I notice a presence of click noise (quite Big) when using a passive 48-step volume attenuator. The Passive Preamp I’m using is the Luminous Audio Technology’s Axiom II Passive Preamp Walker Mod XLR.
Any thoughts on settings to avoid the clicks? I’m suspecting, the DAC is letting out Direct Current to the outputs (both RCA and XLR)

PS: I recall Ted mentioning that the optimal volume level on the MKI being around 92-93. Has this setting changed with the MKII, or better fix the volume at 100 for optimal sound performance?

Surely the passive pre is after the dac (via XLR or RCA) so it must be that that is breaking an earth or something?

Can’t point to them directly, but @tedsmith has mentioned in a few posts that there are design differences b/t the MK I and MK II that make the volume setting sweet spot a non-issue for the MK II. Its more a matter of what works best to your ears with your gear.

Cheers.

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