Sorry to hear of your troubles with your new dac. The advice @oddiofyl has provided is the same general concept I’ve had to use with my dacs and sources as well. Please read the following which is taken from the Lab 12 manual with particular attention to the last sentence.
Connect a Digital SPDIF Output Source
Make sure that your digital source has a SPDIF 75ohm coaxial or optical Toslink digital output. Connect the digital interconnect cable (or fibre optical) from the source output to the correspondence input of dac1 reference. Turn on your dac1 reference and then your digital source unit and activate the digital audio output on it (if needed). Select the desirable input with input select push button on dac1 reference. Dac1 reference can accept resolutions up to 192KHz and up to 24 Bit Depth on any digital input.
Use an audio grade digital 75-ohm digital interconnect cable to ensure the best transfer of your digital signal.
* Please note that Coaxial 2 must be always locked in lower sampling rate frequency than Coaxial 1.