I have proven both steps (1) and (2) for 16/44.1 are lossless by playing Fairytales (MQA) from iPadOS 14.6 → AirPlay1 Lumin (at max volume) USB output → Full MQA DAC that shows MQA.
AirPlay2 to other streamers become AAC.
I have proven both steps (1) and (2) for 16/44.1 are lossless by playing Fairytales (MQA) from iPadOS 14.6 → AirPlay1 Lumin (at max volume) USB output → Full MQA DAC that shows MQA.
AirPlay2 to other streamers become AAC.