I have just done some testing on this, using a couple of different sound devices.
When using Kernel Streaming, application and system volume controls do not function, as Kernel Streaming bypasses the Windows mixer.
When using ASIO, the application volume control does nothing, but the system volume control does work.
I think this is a function of the ASIO driver, and will be hardware-dependent. Some drivers are likely to bypass the system volume control.
When using WASAPI Exclusive, application and system volume controls do not function.
I think this is intended behavior, as exclusive mode should bypass the mixer.
The application and system volume controls work correctly with DirectSound and a non-exclusive WASAPI output, as both of those pass through the system mixer.
The Internal Volume control should always be active regardless of output, unless you are bitstreaming.
If you are connected to a power amplifier, I would suggest that you only use the Internal volume control, enable the Volume Protection feature, and limit the maximum volume to something well below 100.
You should check that the "Maximize device volume" option is not enabled if you are using WASAPI, and that "Optimize volume for best sound quality" is not enabled in the "startup" section of Media Center's options.
I would also make sure that whatever audio device is connected to your power amplifier is not the default sound device in Windows.