Yes the Squelch should be all but open for almost all situations when it comes to Digital signals, but bad decode has more to do with user adjusting these: the AGC ADC & DAC into the positive, increasing basically makes a signal that should have -1's & +1's, you boost any of those three settings and your dissorting the symbol locations, so in essence: if you increase AGC +1, the -1s become 0's and the +1's become 2's (basic appx to what happens, applying negative numbers make the situation happen the other way). Attenuation is a better solution than changing the squelch, in a users' effort to reduce incoming spurious signals. DSP can be very System specific and user can use steps of 8 to find best receive/decode setting for that system, but the previous set of 3 setting are better left at 0 for Phase 2 systems. In FM signals, increasing any/all of those 3 setting, increases the signal, not so bad for Phase 1 (though as we see maybe 0 would be best for Simulcast Systems), and it's certainly not bad for most systems like Moto Type II or older.