So much wrong here but I see others have chipped in to correct most of this now.Hugo2 has a line out mode out of the RCAs as well. And what comes out of the headphone socket has a volume control, hence... an amplifier.
Hell, it's even in it's name.
Chord Hugo 2 Transportable DAC Headphone Amplifier <---- what is this ?
It says it right on the box. "Transportable FPGA DAC/headphone amplifier". it's a dac/amp. a dac plus a headphone amplifier. Some dacs don't have a headphone amplifier, a volume control, or headphone jacks. That's what i meant by "amp section".
I don't want to get into a silly war with you over semantics of what does or doesn't constitute an "amp section". All I'm saying is... Hugo2 sounds better when it's going into some other amps I have over RCA in lineout mode and using another amp to amplify the line out than I think it does from it's headphone jack. With some equipment anyway.
Have you tried comparing ? Do you have another amp besides the Hugo2 ?
Yes there is no 'amp section'. Both the headphone outs and RCA outs are connected together and to the output of the pulse array DAC.
Yes the volume control is digital. It is performed in the FPGA as part of the WTA filtering.
Yes it is possible to select a line level of 3V. This merely moves the digital volume control to this specific level. This applies to both the RCA outputs and the headphone outputs since they are one and the same thing.
What has not been mentioned yet is that line level is not a mode. It is not fixed. You can still change the volume by moving the volume orb or using the remote control. Some amps won't like 3V and it may be necessary to back off a little. A few clicks on the remote is an easy way to do this.
An external amp can only sound better by virtue of being louder or by adding colourations that the listener prefers. Adding extra connections and components in the signal path cannot increase transparency so the output of an external amp cannot ever be objectively better than a direct connection to the pulse array DAC. Subjective impressions are another matter.
Someone asked if Hugo2 has enough output to drive a power amp. Most power amps have an input specification in the range 0.5V to 1V for full output so yes the Hugo2 has more than enough for that purpose. Consult the specifications of your power amp as this specification should always be stated.