Not all DVDs are recorded with 24/96 sampling rate. If your dac is a 16/44.1 unit it will pass 16/44.1 and that's it. The 24/96 will play through it at 16/44.1 and the additional resolution bits/samples are "thrown on the floor" meaning they are discarded and not played. Nothing really wrong with this setup, except that you won't get the additional resolution available on the 24/96 discs.
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