Couple of things:
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As of X3d (I believe), by popular request, MIDI meter activity indicators are no longer red; they're green. So if the OP is seeing red indicators on a meter it's audio. But I see the OP's signature wasy X3b, so maybe an update is in order...?
Aut the OP also said that pulling faders down in AD stops the "clipping' in the track/console meters, which wouldn't happen if it's MIDI, so it does appear there's something a problem with audio gain staging.
But it's not "clipping" per se if it's audio from a soft synth because in-the-box signals won't ever be clipped. Only a live analog input (Edit: or physical output) can actually "clip".
Nevertheless, good practice even in DAWland dictates that you don't want any meters peaking above 0dBFS. In this regard, it's important to differentiate between the red "zone" of the meter above -6dB, and actual 0dB "clip" level. Like SessionDrummer, AD does have a hot output by default. I just checked it with a canned beat and single output from AD's Master out, and it was peaking at -1.2dB. So it's in the red "zone", but not "clipping" the track output.
And finally, the volume controls in MIDI track send MIDI volume CC7 messages. Most synths will respond to this either at the channel level or at the Master output level, but AD appears to be one that does not - at least not by default. There may be a setting to enable it.