Optical Audio Dropouts LGTV -> Cocktail Audio X40 Help

I am experiencing audio dropouts on the optical connection every few seconds from a new LG TV to my 4 month old X40. LG did replace the main board on the TV with no effect. I did some experimenting (each combination with 3 different optical/toslink cables) using a PC, a spare Samsung TV and a spare Kenwood amplifier and every audio setting on the TV. Results:
LGTV -> X40 = audio dropouts.
LGTV -> Kenwood = no audio dropouts
Spare Samsung TV -> X40 = no audio dropouts
PC -> X40 = no dropouts
So it’s just the LGTV & X40 combo that faults.
TV setting are on PCM - all other settings tried. The optical out is the ONLY audio out option on the TV.

Seeing as LG provided a warranty new board they absolve themselves from the issue.
The most helpful depot I bought the TV from will not take back or even upgrade the TV and technically there is actually nothing wrong with the TV in itself. So there is some kind of issue with the combination of this TV & the X40. New firmware on the X40 has reduced the dropouts from several per minute to one every couple minutes. I even tried an optical to RCA digital adapter - no change.
Any suggestions?
Where’s that old Mona company with the $19.95 optical signal boooster…? With free 8-Track to cassette adapter & K-Tel Flip-O-Matic Record Selector…