Well, it looks like they fixed mine. I am waiting to hear back from the SA with the details. My phone interface looks different so they updated some software. My paperwork says "Software retrofit for Alpine HIFI" and " Imported VO using ISSS".
The sound is now "normal" I have the treb set to +1 and base +2 - but I haven't spent much time in the car yet. The sound is a massive improvement over the base system. The overly bright and harsh tone is gone.
My BT phone sounds fine. The gongs are still kinda loud (turned all the way down). I haven't tried navigation yet. I don't have PDC.