Talked to Ryan at Audio Classics. In addition to the USB issue, I mentioned a very intermittent issue with the MC section.
Based on that, Ryan said he will send me another C47 (after a checkout) and upon arrival, I can send my current C47 back - no disruption in use.
That service couldn't be better. So thanks to Ryan and AC.
I received the replacement C47 yesterday (Wed. 9/9/20) and got it installed. My original C47 was also shipped yesterday back to AC. (I made the exchange at the local UPS store.)
With the old C47, my Mac computer could not find the C47 when connected via USB, so I could not use the USB connection for the C47 DAC playback from the computer. Also, getting the digital optical link from the Mac computer to work on the C47 took some messing around: you had to start the playback on the computer, then switch the C47 input to the optical input (no sound), then switch to any other input and then back to the optical input and then you got sound.
When connected to the Mac computer, the replacement C47 USB showed up immediately on the Mac Computer (in the Audio-Midi Utility and int he Qobuz app). Also, the optical connection worked correctly without the switching around stuff. I could switch between the two at will with no issues.
So now it works like it should for USB and optical. I listened for a couple of hours and it sounds as good as the returned unit with no problems (so far).
I noted that the returned C47 showed firmware version 1.03 while the replacement C47 shows firmware version 1.04.
Anyway, now I can move on with my little project to get a Roon endpoint box (as a digital source for the C47) and Roon server set up. I'll want to get an endpoint (or bridge) box that provides digital to the C47 via either or any of the coax, optical or USB connections.