As the main developer of VLC, we know about this story since a long time, and this is just Dell putting crap components on their machine and blaming others. Any discussion was impossible with them. So let me explain a bit... In this case, VLC just uses the Windows APIs (DirectSound), and sends signed integers of 16bits (s16) to the Windows Kernel. VLC allows amplification of the INPUT above the sound that was decoded…
The thing about this is that such behavior makes sense when the suppliers are integrators of the product of twenty or fifty or however many suppliers spread around the globe all relentless trying to cut costs (including cutting corners in implementing whatever spec their chips are supposed to satisfy). The integration itself naturally involves putting together the cheapest stuff and seeing-if/hoping-that it will work. So when you have such a fragile chain of elements, just blank-refusing to allow substitutes makes sense in this rather twisted view. Maybe Windows Media Player fails to call the parts of the API that are "bad" and not documented as bad.
Obviously, I'm not saying this approach is justified, simply that sometimes the irrationality is "sincere".