That's ok, glad to help out.
In my opinion it's not the delay but the resonance that causes the distortion and you'll only notice it with the delay on because it repeats and the nature of analog delay...
The resonance on the 1.5k - 7.k are on 10 and 6 respectively, i.e. full whack, pulling those back sorts it out a bit. Even with the delay off you can hear it a little bit at that top end but once you take it off you can't hear it. It's more break up then distortion which suggests clipping somewhere.
Just remember to keep everything at 0dB
Thanks, Stuart