Check the line/phono switch. It should be in the line position. In the phono position you’ll get way too much gain and RIAA equalization (bass boost & treble cut).
I assume the “clip” LED is coming on? It should NEVER come on… Once you get the distortion problem solved adjust the recording level so you have plenty of headroom. Unlike tape, there is no tape noise so you don’t need a “hot” recording signal and digital is less forgiving if you go “into the red”, and you can boost after recording.