Upgrade Internal DAC of Node or go with Atoll ST120.

One very important consideration in picking a streamer that often doesn’t get enough attention when discussing performance is the user interface, how easy it is to find the music you want and control it. That’s one of the best arguments for keeping the Bluesound Node and going for an external DAC. The Bluesound software is excellent, easy to understand and easy to use. And you would keep that superior interface even if your next DAC isn’t exactly what you want, either.

The Draco is an excellent DAC, especially for the price (I own the Pegasus, and according to the review on soundnews.net the Draco comes really close in performance). If it’s still under warranty get it fixed/replaced and focus on upgrading your steamer. I’d look at buying something used that’s much better than the Node (Lumin, Aurender, Innuos, etc.). While the Node gets the job done it just doesn’t suppress noise near the level of better streamers, and noise suppression is one of the key aspects of getting better streaming performance. And I’d definitely avoid combo units as both DAC and streaming tech are improving so quickly it would be better to be able to upgrade those separately when needed/desired.  FWIW, and best of luck.

The Lumin D2 is now on the list as well as the Soncoz SGD1

So many options. 

I would listen to @sfar regarding, as you already know, how great the Bluesound software is.  Adding an external DAC is simple and made my Node Sing.

There is the CD Creative board that can easily be switched into your Node but you will then need to buy a linear power supply, which all basically comes in around the same price as the Node itself.

So now my list looks like this:

--DAC/Streamer Options—

Atoll MS120 or ST200

Lumin D2

--DAC only with Node—

Soncoz SGD1

Aune X8