HELP! MT Playback distorted and low volume level on all tracks

Hi Tom.

Please let me know what firmware running on your LP-16? (where you turning on the device it displays a 4 or 5 digit number) The current version LP-16 Firmware 83934 (Sept. 2016) please update if you have different version.
What is the uTool version are you using? The current version uTool v2.0.55 (Mar, 2017) please update if you have older.
The sample rate cannot be a problem because the LP-16 reads the value from the settings file (which created by uTool) then automatically sets the sample rate to the correct one. –> You can check that in the uTool. (if your source files 44.1kHz you can create the song in 44.1kHz)
Did you try to change the mixer levels in uTool during the song creation? (if you change the mixer parameters the song have to be re-exported to the USB drive again to apply the new values on the song)
Do you hear that distortion with any song?
Do you hear that distortion in the headphones output as well?
What is your output connection? What kind of cable connected to the LP-16 (balanced or unbalanced)?
Where is your LP-16 outputs are connected? (what is the receiver device)
Could you please check your device with the demo songs? https://cymaticaudio.com/demo