I do think it is probably confusing to use dynamic range here. DR would generally be the saturation point over the read noise, or perhaps over the total background sky noise. The former would model effective camera DR, as if the camera had read noise as low as in the stack. The latter would be more of a model of effective real-world bit depth in the stack. The latter, to calculate effective bit depth in the stack, is usually what I prefer to use when discussing “range of information within the stack”.
At a higher gain, the camera definitely has lower dynamic range. There is no getting away from that. That said…at a higher gain, you usually use shorter exposures. Using shorter exposures usually means you acquire more subs and stack more subs, which means you recover more bit depth through stacking than if you use longer subs at a lower gain. This in the end helps to normalize the effective dynamic range of your stack. For a given camera, usually with reasonable stack sizes (which i would consider to be up to around 300 subs…you can certainly stack more, but you need to stack a LOT more for it to be useful, so it becomes a much greater challenge), a deep stack at a high gain will have similar DR as a shallow stack at a low gain.
The low gain may have an advantage in DR, even compared to a deep high gain stack, in fact…however things may not be just that simple. Lower gains, at least on CMOS cameras, often have more FPN. Notably more banding and similar issues. Long exposures usually have brighter glows. This FPN can warrant even longer exposures to effectively bury this additional unwanted pattern noise, which can diminish DR and balance high and low gains even more.
I think what you are trying to describe is not the dynamic range of the signal, but it’s fidelity (kind of like high fidelity audio…which is about the quality of the audio). The higher gain reduces quantization error, thus allowing you to sample the signal with greater precision and accuracy, producing a higher quality signal. That signal may not have maximum hardware DR, but if you don’t actually need all that much DR…such as with shorter exposures and narrow band filters, then the higher quality signal is valuable and useful as it separates finer, fainter details more readily and produces a more natural normal noise distribution with fewer patterns.
The fidelity or the overall quality of the signal is high at higher gains, and often low at lower gains, with CMOS cameras. A low fidelity signal, one that has higher FPN, brighter glows, more hot pixels, etc. may require more stacking to average out all of those things as well…which can diminish the value of greater hardware dynamic range at lower gains.