It only does this if I insert the console emulation module. I understand gain staging quite well. This will do this sometimes when only the console emulation is on. This is not a nasty digital distortion sound.  It actually sounds like a modulated signal 2 octaves below with distortion as well.  The signal is not too hot. It works just fine with Slate VCC and UAD SSL/Neve channel strips. It is intermittent so I don't know what is causing it.  Having said that, I inserted it in a new project today and it worked fine.  The force must be with me today ;)

I tested Console emulation from Cake side by side with VCC and NLS. I am using Cakewalks emulation as I think it sounds the best, especially Neve setting is hard to compare. But dont forget that prochannel modules has some problems after restarting project. For example if you have inserted UAD effects in FX chain directly in the prochannel module, sometimes it not working, sometimes the sound is strange so you must disable and enable those plugins. Hope next update on X2 will solve this.