Ever since loading the newest firmware, I'm having an intermittent problem with my TF when using the Vintage Delay setting. Problem is that the repeats will sometimes become very distorted, lose any articulation and go to what seems like 100% mix, when mix is set to 20%. It sounds like a short toilet flush. Inputs are not clipping according to the LED on the TF (it's not even lighting up as I run it line level in the effects loop of my amps). Any ideas what's wrong? I use the Digital, Tape, and Mod delays frequently and don't notice the issue with those.
When you updated your unit, did you re-initialize it afterwards? It's recommended that you re-initialize after installation. Be sure to back up your presets before you do!
As far as the distorted sound goes.. with the Vintage Delay algorithm, you can select the number of bits of resolution which result in a distorted sound. Could that be what you are hearing? If you adjust the BITS knob does the distorted sound go away?