Either the signal was distorted prior to reaching the recorder, or it over-drove the analog input stage of the recorder prior to reaching the ADC (analog to digital converter). Metering and dual recording happen post-ADC.
What was your input setting level?
Has the "do no go below" input setting value been determined for this recorder yet?
^ That's the setting below which the analog input stage will audibly distort or clip outright even though the meters do not peak at full scale (they may move "sluggishly" and "look less lively") typically referred to at TS as "brickwalling". More precisely, that happens when the input signal is is hotter than what the recorder can accept, leading one to attempt to set the input value low enough to compensate, yet the input level adjustment happens after the distorting analog input buffer stage, so no matter how much one turns down the input level after that, the initial input stage is still overloaded. Turning it down further just reduces the level of the already distorted signal before it reaches the ADC.
If this was the problem, the only fix is to attenuate the level of the signal prior to it reaching the recorder. Ask the sound guy to turn down the level of your feed, or introduce some type of attenuation in the signal path between the board and the recorder.
Once the "do not go below" level setting has been determined, and you find that an input signal is still clipping the meters with the input at that setting, you'll know that it will sound distorted regardless of your input level setting unless you can otherwise reduce level prior to the recorder.
Apologies if this has already been determined for the R-07. I don't own one and haven't followed the thread closely.