This is not a bug... This is the correct way of handling digital audio
output.

Digitally altering the volume affects does affect sound quality, so when
you use a digital output, you want to output the volume at fullscale,
unmodified.

Altering the volume is then left to your external equipment.

It works the same on OSX when using the optical output of a mac mini.

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https://bugs.launchpad.net/bugs/737617

Title:
  [USB-Audio - USB Audio DAC] FiiO E7/TI Burr-Brown: Volume control does
  not work

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