Not saying this is exactly the same problem, but offering an observation / data point.
Last Thursday I got a new Phonak aid - BICROS rig - and it is amazingly powerful. However, I came to work after the fitting and was dragged into a meeting with three other people, in a small conference room. It sounded like grizzly bears fighting - growling and screeching. I noted that “S” sounds were rendered as “Sh” sounds - seven (numeral 7) became “sheven”, sushi became “shooshy”, and so forth.
Soonest appointment I could get was yesterday (Monday) and she told me it was the “Sound Recover” function, which shifts frequencies lower, to frequencies that are not as impaired. She removed that function and “S” sounds were Ss again, and “Sh” sounds were distinct, and “sushi” came through as “sushi” and “seven” as seven.
So, it might be that the Sound Recover function is causing some of your distortion.
You have my best wishes that the audiologist can adjust the distortion out.