Thanks everyone for looking into this and checking all these options out. I did find several issues with OS X 10.10 and USB DACs with USB3 ports when doing a google search. In one case I found, the same behavior was seen. Here is the text from an audiogon post:
Hi, folks. I "upgraded" my MacAir to OSX Yosemite on Tuesday and now my DAC (Esoteric K-03) won't work properly. Whether on iTunes, Amarra or Audirvana, I get about 15 seconds in before the sound begins to warble, distort, chatter and finally stop altogether. I'm assuming it's a driver issue (there hasn't been an updated Mac driver on Esoteric's website since 2011), but I'm wondering if anyone else has had this problem and if there are any creative fixes anyone has discovered. Thanks!So at this point, its probably good to send the DAC back to me. I now know it wasn't a firmware, loose connector, etc issue. My solution for now will be to put a USB2 hub in the signal path. This has worked around many of the issues seen on the web. I may get some additional jitter, but as both devices will be async and able to pump data music faster than is ever needed, probably not an issue.
Thanks again for looking into this. I will update the forum on my workaround, and will periodically check operation with the usb2 hub removed to see if some 10.10 update fixes the incompatibility.
As a side bonus, your upstairs mac is not on 10.10
Tony
Mac mini running Roon->
Mytek Brooklyn DAC+->
Darwin Truth RCA IC->
BeePre (BeeQuiet, Mundorf Ag/Au/Oil, Sophia Royal Princess 300B)->
Audioquest Colorado->
Rogue Audio Atlas Magnum amp (Psvane small signal tubes, KT150s)->
Audioquest Gibraltar-speaker cables>
Magnepan 1.7 & REL T-5