The Asus U7 has a full-scale input/output of 1V RMS (I looked it up). It probably should not be used for your test without attenuation.
On the other hand, your DAC probably has a full scale output of 2~2.1V RMS (this you can probably find on the manufacturers web site). If you send the un-attenuated output of the DAC, to the Asus U7 input, at 0db it will probably clip, and this is what you are seeing.
In other words, you cannot send a 2V RMS signal directly to a 1V RMS input without clipping.
Inputs on PC sound cards are easy to overdrive (internal or external). 2V RMS is about 5.6V P-P. USB supply voltage is 5V, if that.
Easy to check, buy a 6~12 db inline attenuator from any shop selling electric guitars... (or make a voltage divider from two resistors )
Someone else will have to explain the Rune Audio settings, but I would say that they are not related to your test. I do not think you need to worry about your hardware, it all seems to be working correctly...