Problem: I have some unwanted trailing distortion trailing notes. It sounds like someone tearing paper. It occurs when the amp is turned up above “3”. ...
I think you mean, "
As the note trails off, it sounds fizzy and not smooth."
If correct, turn the volume down. Or put away the microscope.

Most amps sound like that when the player artificially gets obsessive about micro-details in the amp's sound. I vividly remember listening to the same "flaws" in my 1967 Princeton Reverb 25 years ago.
If you step back, play a song in the context of a band-track, those little flaws are inaudible.
On another forum, a guy discovered the sound of "power supply ghosting" (really the distorted guitar sound creating intermodulation distortion with power supply ripple due to high power output) but only after connecting his amps to a load box to crank the snot out of them while recording quietly. Odd sound with the guitar on its own, but sounds "thicker" in the context of a band (where it can't be distinctly heard).
That guy also found out from several of us (including an amp manufacturer) the only way to get rid of his noise is huge amounts of power supply capacitance, until the amp sound stiff an uninviting at lower volume. Gotta pick the lesser of two evils.