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I say it's because the AMC adjustment is on the edge of the threshold from staying open. I turned this up to where it holds. It can be turned up and it will cause the modulation to bring up the peak some yet the modulation limiter circuit is still active.


Typical radio hack jobs cut the modulation limiter which essentially carries the modulation well beyond it's limits. This gives radio's that Big AM sound but also can cause distotion and splatter across many close in frequencies.