I am not familar with the output specs of the bifrost. I assume it is somewhere close to standard 2vrms. The "official" BOM for the O2 sets the gain 2.5 and 6.5. So yes, if it is built with the "official BOM", then high gain setting will clip horribly.
I'm guessing that you misspoke, or don't understand what clipping is and how it is generated in the O2. Clipping comes from driving the gainstage op-amp output above about 7vrms. (2vrms input) * (6.5 gain) = very bad clipping. There are various scenarios that could result in brainbucket's amp being on the verge of clipping. It depends on the gain setting of the O2, the output level of the DAC and the setting of the OS software volume control. The result could very easily be exactly what brainbucket posted. The important point is that the O2 is vunerable to clipping with an overly hot source for the gain used and to fix it could be as easy as lowering the software volume control, if clipping is indeed the problem.