I should probably keep quiet, because I don't know the answer. With luck, perhaps someone will come along who does. Meanwhile, though, I'm too intrigued to shut up. Lord help me, how I love a diagnostic challenge!
I took a look at the 300DC schematic. At my level of comprehension (always iffy), it's not obvious exactly how the peak lights are supposed to function. But, I think they might trigger in response to the level of current in the output transistors, and that could reflect a serious problem.
One thing I can see from the schemo is that the peak light circuit is not adjustable. So, either there's really something amiss elsewhere, and the peak circuit is reacting to it, or the peak circuit itself is faulty.
I think it would be a good idea to see whether the symptom occurs when the speakers are disconnected. If it does not, then I'd suggest checking the speaker wiring very carefully. If you don't spot anything wrong with the wiring, you might consider re-connecting the speakers with the left and right connections (at the amp) swapped. and checking whether the same channel's light flashes.
Do you hear anything amiss when the light flashes?
Cheers,
chazix