I’d recommend separate DAC and a transport. If you ever feel the need to upgrade either, easy enough. You didn’t mention budget, but the Audiolab 6000CDT is a great transport, and a helluva deal at $600.
I prefer R2R ladder DACs, as Soix suggested there are great units for all prices from Denafrips, Musician, Holo Audio, Gustard……I prefer the Denafrips and Holo Audio DACs