In recent years there have been a variety of methods proposed for solving general nonlinear DAEs. Several of these methods require repeatedly solving a nonlinear least squares problem for a solution that is not unique. While the methods theoretically only require the unique part of the solution, it has been seen that the nonunique parts can pose numerical difficulties or put restrictions on how the integrator is implemented. In this paper we examine a modification of the classical Gauß-Newton iteration which is designed to control the size of the terms that are not unique. We will first develop the iteration scheme and analyze its convergence properties. We will then illustrate its application to the integration of differential algebraic equations.