I had similar issues with my ARC LS-15.
I swithced to LS-25 that has more volume steps and it helped, but the solution was delivered by adjustable gain of LS-25. I used it only on lower gain setting. That really helps. That's why I suggested lowering the output gain of your SP-16. Or get another preamp. One of the best volume controls I've seen on a preamp is on Sonic Frontiers. You really can not ask for a finer adjustment. I think it has 180 steps or close to that number anyway. You can fine tune that volume control. It's really nice.
I swithced to LS-25 that has more volume steps and it helped, but the solution was delivered by adjustable gain of LS-25. I used it only on lower gain setting. That really helps. That's why I suggested lowering the output gain of your SP-16. Or get another preamp. One of the best volume controls I've seen on a preamp is on Sonic Frontiers. You really can not ask for a finer adjustment. I think it has 180 steps or close to that number anyway. You can fine tune that volume control. It's really nice.