Thanks. I am not using a headphone amp or DAC.
I am connecting my PC directly to my integrated amp using the 3.5 mm headphone/earbud audio outlet using a 3.5mm to stereo RCA adapter cable.
If I plug my ear buds into the PC, the "static" is audible. If I play a PC system tone through my stereo, it is crystal clear.
So my thought is, I have a setting in REW set incorrectly or my PC’s sound card just can’t play the sweep without distorting.
PS. I played the sweep on the PC using earbuds and the PCs built in mic without any distortion (so with the MiniDSP mic unplugged) and sample rate set to above 48kHz so there is come sort of conflict with the USB mic.

