Yes it can, it can scrambled, similar to encryption. Care to open up the simple math?
While PCM images are directly correlated with source, repeating around every multiple of the sampling rate.
Just for fun, for example Chord Mojo has higher output quantization noise with PCM inputs than Holo Spring running at DSD256. In addition, Mojo’s modulator suffers from spurious tones and noise modulation…
As usual, it all depends on the modulator implementation. You can make a poor one, or a good one.