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Hifiberry Digi + With Isolation Transformer Stuttering Issues - Digital Coaxial/OpenElec/RPI3

I just got the hifiberry digi + output transformer version.

The Linux Distro i am using in Openelec, with USB HDD connected to the RPi 3.

The Digital Coaxial output of the Hifi Digi +(with output transformer) is connected to my Yamaha AVR.

I have no problems using the optical connection, but when i use Digital Coaxial input to my AVR, each song/file i play stutters every two seconds irrespective of file size , i have tried FLAC/WAV and MP3 and each file stutters every 2 seconds, the AVR shows a drop in signal and connects after 2 seconds and then shows a drop, causing the stutter.

Whereas with the optical connection there is zero stutter issues.

Can you please help, can it also be due to grounding issues of DAC in AVR?

Really desperate to get this up and working, as i want to use digital coaxial input and not optical.

 

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