Which DAC are you using?
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Again: You use DE-EMP with pre-emphasized CDs. I do not know the AN DAC but most DACs switch automatically and most of those have an LED indicator informing the user that this has happened. If the AN requires you to make this decision, the problem is that pre-emphasized CDs are rarely so labeled. Seems like a dumb system. Why not ask AN or consult the instructions for the DAC?
The facility for a manual de-emphasis was borne out of the need to be able to allow de-emphasis on discs where there is no encoding that triggers the automatic de-emphasis.
Now you may ask, are there such CDs??
Unfortunately yes there are and quite a few (not that the record companies would admit to it off course) I have a number of Jazz and a few classical CDs all of which sound clearly pre-emphasized, but none of them trigger the auto pre-emphasis, so the manual version is pretty useful.
For normal CDs always use the direct out.