I notice the same behaviour. In my queue from the Daily Mix one of the songs it played was “Someone, Somewhere in Summertime” from “New Gold Dream / Simple Minds”.
I have this album in my library als old MP3’s from when disk space was expensive. But I have this album’s Primary Version in FLAC from Tidal.
My Streaming Content Preferences are “Prefer MQA over anything else”. “Show hidden tracks and albums” is on “No”.
And still it took the MP3.
Wouldn’t a list of how the user wants the format to be selected not be better than the current behaviour? I could put “MQA, Hi-Res FLAC, FLAC, AAC, MP3” (just an example) where someone who doesn’t like MQA would set it to “Hi-Res FLAC, FLAC, AAC, MP3, MQA”.
It’s very noticeable if MP3 is selected instead of the lossless formats.