I crank the volume up just past half way and there tends to be distortion. Below half way the sound is incredible. The records sound better than the corresponding CD or, of course, DAC streaming.
We're missing some important info. What is the cartridge, Cary Audio mono block main tube amp and speaker in your system?
Volume knob position means nothing! Could be the phono stage and preamp gain is too high overloaded the power amp input. You need to know the total gain of the whole system and the sensitivity of your speaker to see what cause the problem.