What is the trim level on the AVR like? Don't know how loud you are playing it?
Unless both the trim and playback volume are up pretty high, it wouldn't "clip"
If you don't have a problem playing back using head phones, the problem could be in the speakers.
I know it sounds like bad news, I had similar "fuzz" issue and it was because messed up my voice drivers and it needed to be replaced. Multiple movies are showing this is a big hint for me.
Beside a headphone test, you can test it by putting the dialog into LR speakers. Just set the AVR and set it up so it doesn't have a center speaker.