Just upgraded to 16.04 and have the same issue.  My pulseaudio version
is also 1:8.0-0ubuntu3.3.  I also can't apply the workaround in comment
#20 because all audio sockets are in use.

In case it helps: if the sound settings window (unity-control-centre
sound) is open and has focus, then 'Digital Output (S/PDIF)' becomes
selected at exactly the time that the indicator appears, regardless of
which output device was previously selected.  I can't find a way to
disable (not simply mute) the S/PDIF output to see if that helps.

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https://bugs.launchpad.net/bugs/1585084

Title:
  Volume notification keeps popping up constantly (the notify-OSD bubble
  on top-right corner)

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