I have exactly the same issue on my V70 at the moment.
It start with the DAB radio occasionally stopping working after a few minutes of driving. Stopping the engine and turning ignition off etc at traffic lights and restarting would sort it then it would be fine for weeks.
Now I have the same symptoms as you. It can not be selected or tuned. My local Volvo specialist plugged it in to their VIDA and it reported a fault with the DAB unit so I am not about to buy a replacement unit and try that.
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2012 (61) V70 D3 2.0d SE Auto 98k (my car)
2005 (05) V50 2.0d Manual. (Her car)
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