My guess is that the perceived benefit is the result of the wire + magnetite that is connected to the DAC’s circuit ground acting as an antenna, and introducing RF energy that it picks up onto the DAC’s circuit ground. Resulting in some combination of intermodulation effects, jitter effects, and/or low level high frequency noise effects which happen to be euphonic.
The fact that this is in a "downtown high rise building," which is no doubt replete with numerous sources of RF energy, would seem to add credence to that hypothesis.
Plus I’ll run to other components and report back.
Doing this with multiple components (connected to the same bag of magnetite) **might** result in ground loop issues, causing hum and/or low level high frequency buzz.
Regards,
-- Al