It is paired but none of the paired devices are connected right now.Unable to reproduce, iPhone 7 Plus, with 10.1. Playing music from the music app sounds plenty loud.
Are you per-chance paired with a Bluetooth device that could be affecting audio volume? I had a problem with this yesterday; the volume control was affecting the bluetooth output level (my car) and not my phone's volume. When I unpaired it, suddenly I was able to turn up the volume, in this case to hear Google Maps navigation prompts.
Max volume is same but it's way the volume bar works now. Maybe it's more accurate with the way it displays actual volumeNo, I really don't get what you are saying to be honest. I have adjusted all adjustable options of volume increase/decrease and the volume is much lower in 10.1