My Onkyo DP-X1 shows a very similar signal path to the screenshots above. And it still sounds quite good with good headphones, even if the music does not arrive lossless.
But the big problem is that I have to “supply” it via WiFi as an endpoint, and unfortunately it stutters even with a very good WiFi signal. There are always dropouts, crackles and interference. I can’t get a grip on it.
See also Onkyo DP-X1 - unclean Roon playback.
In the meantime, I only use it with music from the inserted memory card or with the Qobuz app, which works smoothly. Unfortunately, qualitatively acceptable Roon use is not possible with this device.