I looked at the specs on the VCA module here:
http://www.doepfer.de/a1324.htm

Any control voltage above +5v pushes you above unity and into amplification. If you have anything that can measure voltages, you may want to check your modulation source to see if you are, in fact, hitting the VCA harder than +5v in CV. That would explain your unwanted distortion. You can either attenuate the audio signal or attenuate the CV signal.

Using another VCA or attenuator (like an attenuverter) will help keep the signal in check to avoid distortion.