Two tips here.
One, the SB players will all have streaming issues going much above 96/24 on wireless, as you are getting closer to saturating their elderly G-band connection. At 192 kHz, you are right at the practical limit of a wireless connection on these. Use an Ethernet connection with higher bitrate HD streams. You won’t regret it.
Second, my experience with the SB players is that the SPDIF output is the most stable as you pass through higher bitrates to an outboard DAC. Unless you need the ground loop isolation of an optical link, I would go with a coaxial connection first to your DAC. Toslink will start to experience increasing dropouts once above 88/24. And there is no need to futz with a USB connection with a Touch once EDO is setup. Use a good quality 1.5m digital coax cable, and you should be good to go up to 192khz.
The Touch by default is setup to natively decode a FLAC stream, so don’t change anything there. Occasionally, some of the SB players (the Transporter in particular) will choke on a non-standard FLAC compassion rate file. Re-encoding the file to a less aggressive FLAC compression rate will solve that issue whenever it arises.
In any event, I do not recommend networking any server machine via wireless. The server machine should be on Ethernet for best performance. You may be able to pull it off with one client most of the time, but other machine tasks will inevitably disrupt a wireless stream, causing client dropouts.
Lastly, be sure to turn off the local analog outputs in EDO if you are using an outboard DAC.