Send 705.6/768k PCM output from HQPlayer always (also for DSD content), “Default” as DAC bits and LNS15 noise shaper. Choice of filter is up to your preferences.
Point of HQPlayer is to do it better and bypass the WTA1 filter in Qutest to improve it’s performance. So of course there is need to upsample, by doing it better than Qutest’ internal stuff.