Now, if you use 3 the whole electrical noise thing is eliminated as plastic / glass doesn’t carry electrical noise. If you’re directly connected to the core, 2, than the whole “noise debate” about having to decompress may be audible. This has been tested by a few users with DACs that allow for bitperfect testing. If your playback is 1 then it doesn’t matter if the source is WAV, FLAC, ALAC, or any other lossless container because what arrives at the endpoint should be the exact same.
This may be dependent on your signal path. Brain technically understand that one can’t hear the difference between FLAC and wav
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