Are you operating in the correct SPL window for high-fidelity listening?

To refer to a "volume pot" as an "attenuator" does not necessarily per se make it better. A rose by any other name, so to speak. Yes, some analog attenuators are better than others. Upgrading the attenuator is often a very effective way of making a permanent improvement in SQ, unlike tube rolling, for example. However, I still don't know what "incorrect attenuation" is or means.

"Adding gain to a low level signal increases distortion. This IS a fact." Yes it is, but you are talking here about the converse of attenuation.

Music, mood and beverage dependent.

I play guitar and have played in and  attended enough performances, both acoustic and electric, to have a good sense of the volume level of live music of different sorts.

With serious listening to acoustic music I generally try to match the level I recall of the real thing, with the exception of orchestral music--my room isn't big enough to handle that level.  I listen to a lot of solo guitar and lute, and need to turn down the volume quite a bit for those. (It's unfortunate that even good sound engineers often amplify acoustic guitar too much at live concerts of popular acoustic guitarists.)

Fortunately, my Classé Audio DR-7 preamp has a system of discrete resistors for the volume control of each channel, so sound quality is not impaired by turning down the volume as it might be with potentiometers for volume controls.

As with orchestral music, I may not be able to match the volume level of rock music, so I just adjust it to taste.  I don't have an SPL meter, so I couldn't say what the dBs are.

@markalarsen  It's not only how loud it is that's important but rather how you got it to that DB level. Kind of goes along with the topic.

Quality over quantity might be something to consider as an audiophile.

@lewm   However, I still don't know what "incorrect attenuation" is or means.

For example...If you have a pre-amp with lots of gain you have to keep the volume knob low or it's too loud. You are 'attenuating' the signal down just like stepping on the brakes. Then, taking this reduced signal and adding gain from the pre-amp.This results in added distortion. (low level signal boosted by un-needed gain)

"The converse of attenuation" is not really an opposite. It's simply letting off the brakes more. Not adding 'gas' but like a car on a hill you let off the brakes it will accelerate. Letting off the brakes allow for MORE signal to come through.

Higher quality pre-amps like @drmuso  points out don't impair the signal like regular volume pots that many people have. However, in most cases, a higher volume knob setting is a good thing.