This could also be by design.
Let's say you test out two amps in the store. You try out amp A, turn it up halfway and it's LOUD...not knowing that's all she can do. Then you turn up amp B halfway and it's not nearly as loud. You then get the impression that amp A is much better because even at halfway it's waaay louder than amp B. But amp A is done. It can't do any more. Amp B might completely outperform it if you allow the volume control to work through it's whole range. But you buy amp A because you don't realize that. Cheap trickery, yes. But it happens.
True. In fact, I had a Hartke TX600 where nothing much was happening to the volume until you hit 3 o'clock. A lot of people were criticizing that. Makes you wonder whether they decided to go the other way this time.
Plug in the second cab and the distortion goes away.