AirPlay stopped working

I had (since June 2015) a working config:
RPI B+
volumio 1.55
CambridgeAudio Magic 100

It worked great after I set the output from “ALSA” to “C1” ( in Menu, Playback, Audio Output). I used both local USB storage and AirPlay.

After some weeks ( and the RPI was turned off), there is no output when AirPlay is used( yes, it is enabled in the menu config).
Playing from the locally attached USB thumbdrive ( to the same DAC) works great.

I noticed that after reboot, the AudioOuput returns to be Alsa, but even if I set it to C1, there is no output.
I suspect that a system update broke something.

I can connect using ssh to the RPI and get required logs if you guide me.
thanks!
Noam

—root@volumio:/etc# cat mpd.conf
###################################

Auto generated mpd.conf file

please DO NOT edit it manually!

Use player-UI MPD config section

###################################

follow_outside_symlinks “yes”
follow_inside_symlinks “yes”
db_file “/var/lib/mpd/tag_cache”
sticker_file “/var/lib/mpd/sticker.sql”
log_file “/var/log/mpd/mpd.log”
pid_file “/var/run/mpd/pid”
music_directory “/var/lib/mpd/music”
playlist_directory “/var/lib/mpd/playlists”
state_file “/var/lib/mpd/state”
user “mpd”
bind_to_address “any”
port “6600”
zeroconf_enabled “yes”
zeroconf_name “volumio”
samplerate_converter “Fastest Sinc Interpolator”
volume_normalization “no”
audio_buffer_size “2048”
buffer_before_play “20%”
filesystem_charset “UTF-8”
id3v1_encoding “UTF-8”
gapless_mp3_playback “yes”
auto_update “no”
mixer_type “disabled”
group “audio”
max_connections “20”

decoder {
plugin “ffmpeg”
enabled “yes”
}

input {
plugin “curl”
}

audio_output {

             type           "alsa"
             name           "Output"
             device         "hw:0,0"
             dop    "no"

}

root@volumio:/etc# lsusb
Bus 001 Device 002: ID 0424:9514 Standard Microsystems Corp.
Bus 001 Device 001: ID 1d6b:0002 Linux Foundation 2.0 root hub
Bus 001 Device 003: ID 0424:ec00 Standard Microsystems Corp.
Bus 001 Device 004: ID 0781:5567 SanDisk Corp. Cruzer Blade
Bus 001 Device 005: ID 22e8:dac3