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LM358: AC to DC signal converter

Part Number: LM358
Other Parts Discussed in Thread: LM2904, TLV9002


I am working on a basic AC 5Vpk to DC (0-5V) signal converter, where AC input both phases are converted to 0-5V output. For some reason, I cannot understand why my output is limited to about 3.5V for each peak AC input. Could someone please explain why this output is limited and not from 0V to 5V output?

Thank you in advance!