I think the potential cause for your current Audyssey woes might have to do with what's known as "reference volume" and something I've run across before, which is the volume dial setting having an effect on the loudness of the test tones, even though it's not supposed to.
One of the most often misunderstood things with any A/V receiver is that when the volume level reads "0 (zero) dB" on the front display, that is supposed to be "reference volume". Reference volume is quite loud. It is when you have an average of 85dB as your Sound Pressure Level (SPL) for normal content, with peaks as loud as 105dB in the speakers and peaks as loud as 115dB in the LFE bass. This is commercial movie theater loudness levels. And it just so happens that human hearing is at its most linear at 85dB. In other words, play any audible frequency at 85dB, and subjectively, they'll all sound about equally as loud. At lower dB levels, we hear midrange frequencies considerably better than bass or really high frequencies. So at something like 65dB, we might say that a 1kHz tone sounds subjectively much louder than a 30Hz tone or a 15kHz tone, even though, if we measure them, they are all at 65dB! They're all equally loud, but we don't perceive it that way. At 85dB though, we perceive all frequencies as being pretty much equally loud.
So, when you use Audyssey MultEQ auto setup, what it is supposed to do is output a standardized test tone, measure it, and make it so that if you set your volume dial on the receiver to "0dB", you'll get "reference volume". Any setting of the volume below that, like "-15dB" or "-30dB" or what have you, is then supposed to be that many decibels below "reference volume", hence the negative numbers.
What I've experienced though is that sometimes, the volume dial setting that you have -before you run Audyssey - has an impact on the loudness of the test tones! It isn't supposed to. But I've definitely heard it. So the easiest thing to do is to set your volume to "0dB" just prior to running Audyssey. Then run Audyssey, and see what you get! If it works, you should get trim levels that are below the default center trim position, since the Sierra speakers are fairly efficient and you should be hitting "reference volume" with no trouble and not really that much power from the Denon's amps.
So give that a try: set the volume to "0dB" prior to running Audyssey. The other the other thing you can try is to just reset the Denon completely. There should be an option in the Denon's menu to just reset all settings back to factory defaults. Running Audyssey from the factory defaults should always work properly. Running Audyssey on top of a previous Audyssey run can sometimes screw things up too, I've found.
The Dynamic EQ is, again, to do with "reference volume". Remember that your volume dial reading shows how many dB BELOW reference level you are listening at. And also remember that we don't hear bass nearly as well as the midrange frequencies if it is quieter than 85dB. So what Dynamic EQ does is it amplifies the bass if you are listening below reference volume so that subjectively, the bass sounds as loud as it should! Dynamic EQ will also boost any sounds that would now be too quiet to hear clearly at your below reference level loudness. So that's why the bass and surrounds seem so much louder with Dynamic EQ turned on!