I usually run in Normal Gain, but find when I play it at the same volume in the BP Mode, I can still have a conversation in the room because the slam in missing. So again I assume that is what is meant by "lacking dynamics"?
So how does my VAC differ from one or the other, if there is a simple explanation?
No, the lacking dynamics with a passive pre are due to impedance mismatch and the robustness of the source output stage.
With VAC in Buffered Passive mode, since it works at unity gain (0dB gain), you get to hear more of the sound character of your CD player output stage. When you select the Normal or High gain, the VAC pre enhances dinamically the sound signature of the Rotel player with its own gain stage signature. But there are sources with output stages that do not need this enhancement from a preamp.
A buffer assures there won't be an impedance mismatch, but will not enhance the sound produced by the source. If the sound lacks dynamics in Buffered Passive mode, it means the source lacks dynamics.