@chinmie is doing the right thing if he is not using the phone out of N3 at all. This actually is a good idea for those who want to use N3 with desktop or portable amplifier, it is not identical to the line out but close enough.
The line out of N3 is a fixed 1.0 Vrms output from headphone out, it does not bypass the headphone amplification Op-Amp, you can argue that the line out is not complete clean and will undergoes double amplification, but this the best we can do given the space limitation inside the N3, PCB is so crowded that we simply can't squeeze a dedicated line out signal path into it, and to do it right, we cannot use the DAC output as line out directly, we need to add a dedicated Op-Amp after the DAC output, this is what we are doing in the next DAP.
1.0 Vrms is a relatively low output for line out, the standard line out should be 2.0 Vrms. We have to keep this low value because we want to make sure the line out is clean enough even after double amplification. A lot of users are happy with the quality of "pseudo" line out from N3 and consider them very "useable". In fact, there are a lot of more expensive DAP adopted this fixed headphone output approach with their line out feature, so I suggest we always check the feature with your own ears instead of assuming the result based on a generic approach.
chinmie, sorry for unable to facilitate your change request, we cannot customize our firmware for individual, once we do that, we'll need to expand our software team dramatically. All firmware change must be generically apply to all users, that's why we can't take your word as-is and change the firmware, we must consider the great majority which, according to our study, only a small percentage of N3 users will use Line out of N3 exclusively. Your patient and consideration is sincerely appreciated.