My initial reaction upon hearing Headphone (1) was that they are really bad. I was on verge of returning them only to discover the next day that they sound vastly better with ANC on. And this is not a minor difference, it’s like a completely different set of headphones - stronger bass, clearer highs, objectively better across the board. Switching EQ momentarily to a different preset and back also sometimes helps to toggle the “proper” sound. This seems like a software bug - is anyone else encountering this?
This by the way is verifiable, I recorded a song while switching between ANC settings and there is an audible difference. Can’t really post it without copyright infringement, but I can share it via PM upon request.

Spatial Audio & Head Tracking disabled, LDAC is on, Over-Ear detection disabled.