Nice player.Jay's CDT2-MK3
No connection point is ever worth a glitch. I don't do DSD, but when I found the L/R channels were swapped, I took pains to fix it. I could have easily said, leave it, I don't use DSD files, but I needed the entire unit to work correctly, not just the stuff I use. Anyway, the issue for me happened to be an I2S misconfiguration issue.It's been a while but I'm pretty sure I didn't have glitches using optical or coax straight into the T2. But for me adding the GAIA and AES/EBU were both significant improvements and well worth the occasional glitch. JMO/YMMV and all that.
That said, have you looked at the I2S configuration between Terminator and Gaia? Also, because I have to ask.... you sure it's not the CD player itself. Swap connection points?