It seemed so easy that I could not understand why I had these volume troubles in the first place. So I made a few more tests.
I switched the audio device from the DAC to Default. Music then came out of the internal loudspeakers. I played with the volume slider. It worked for both system and internal volume. When system volume was turned down and I hovered over the blue lights, jriver reported that no changes are being made to the audio, which was not true. Disabling volume control allowed me to lock volume to any attenuation that was used before. It did not jump to 100%.
I then switched the audio device back to the DAC. Music was played through the stereo system again, but at a very low level. The DAC consistently reported 24/44.1, no matter which settings I used for system and internal volume. It seemed like the additional 8 bit were appended at the wrong end of the codewords. Disabling volume control also had no effect. When hovering over the blue light, jriver reported that no changes were being made to the audio, which was not true. Detaching the USB cable and restarting the entire Mac had no effect either. I still could hardly hear something out of the stereo system’s loudspeakers. I then went through the different option menus of jriver, including the volume settings within these menus and not only via the loudspeaker button left of the volume slider. I cannot tell which click was the right one, but apparently, volume control was operational again, and turning up the volume with the slider to 100% led to music being played through the loudspeakers at normal level. The DAC showed me 16/44.1 again. Disabling volume control now switches volume straight to 100%. Also, the slider no longer works to adjust system volume, it is only operational when internal volume is selected.
My conclusion is that the system seems to have some kind of memory. At least for me, the behavior depends on the sequence in which audio devices have been selected and menu buttons have been pressed. I am happy that I brought it back to a stage for which I believe that it really does not alter the original bits.
Alfred