What is the difference between Hardware and Software on the XL settings for Volume

is there any specific details of what exactly the Hardware and Software options do in the XL settings for each streaming option?

As far as I’m aware it’s as follows.

Software means that RopieeeXL is actually controlling volume changes.
Hardware means that your DAC chip is controlling volume changes (if it has this capacity).

If you’re using Software at anything less than 100% then you won’t get bit-perfect playback. With Hardware you will get bit-perfect playback.

What @SukieInTheGraveyard says…

And in addition: not all HAT’s provide hardware volume control, hence the fallback to software volume control if you need it. General rule of thumb: hardware volume control is better than software volume control.

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For Shairpoint and Librespot, the only choices are “OFF” or “SOFTWARE”… “HARDWARE” is grayed out in the dropdown. Is this what I should be seeing?

That depends on the output. Hardware volume control is only supported on certain HAT’s (that have actually implemented hardware volume control).