Hi Ed,
I do have different hardware but am also using the driver 1.10.4 on Win 10 with the issues of distorted sound output and recording with dropouts.
I tried to connect the device to three Win 10-devices, all completely different hardware and all have the same issue.
But when I connect to a Win7 machine with the same driver, everything is working fine!
So I think it is really a compatibility issue with the driver and the (latest?) Win10 version(s) and that Steinberg support should pick this up.
Cheers
snug