I'll try one last time. Can you please just answer the questions so that I can understand where we are at this point?
First, was the DAC plugged into the TAPE input when you noticed the problem with the selector switch? If yes, did you have the tape monitor button activated?
Now that you have the DAC plugged into the AUX input, does the selector switch work correctly (the tape monitor button should NOT be activated)?
One other question...do you understand the function of the tape monitor? If nothing is connected to the TAPE input and it is activated, all you will hear is NOTHING. If something is connected to the TAPE input and the monitor function is activated, all you will hear is what is plugged into the TAPE connections....no matter what position the selector switch is in. Let this sink in.
Now, with this understanding, are you still having a problem with the selector switch, or was that problem all due to user error?
I don't need any information more than the specific answers to these specific questions for now.