Actually, I've somehow, miraculously, managed to resurrect my dead Logik IR100 to be able to try this myself.
The good news is that the audio is, indeed, cleaned up.
Whilst I've not had this distortion on my radio for BBC stations, I know Virgin Radio has been glitching very badly on the IR100.
So I ran that through Logitech Media Server and the glitching stopped!
Here is a video I made to demonstrate this.
It starts off with Virgin Radio Groove being played directly. As you can hear, it's barely audible with the glitching.
Then I run it through LMS (which begins on the last station I'd left it, BBC Essex).
I then switch to Virgin Radio Groove through smartphone control (with a very odd delay I've not come across before) and it happily plays cleanly.
I'm guessing the mp3 stream generated by LMS conforms more to what the Logik expects.
I then switch to Wave 105 and Time 107.5 with a delay that's more in line with the expected amount.
Take a look!