The LA Audio TCX2 has both balanced +4dbu and unbalanced -10dBv interconnections. All you’re doing by bumping and balancing the audio is adding noise and distortion, unless the compressor was more than 25’ away from the mixer…the compressor is -10dBv unbalanced internally. Balancing the signal doesn’t make it sound better, it mitigates noise. Generally noise interference/induction isn’t a problem with unbalanced interconnections unless you are using poor quality cables, or your cable runs are more than 25’ or so, or there’s some other unusual environmental factor.
And okay on the other reasons you are using the M1, but, seriously, if all you’re wanting to do with the compressor is manage your master sum, just use the insert points on the mixer…no need to take it off of the M1 and then back to the mixer.
Hope this helps.
You may have been having level issues if the LA-40mkII input level switches were set to -20dBm instead of +4. Look at the bottom of the unit. But, again, in your setup the LA-40mkII is completely unnecessary, and, IMO, detrimental.