Best DAC for my system?

Have you every heard of Topping DACs? I hadn’t either, but the brand is a favorite of an audio forum that believes in OBJECTIVE test results. Topping has a line of sub-$300 DACs many sub-$200 that in the test results there are state of the art.
https://www.audiosciencereview.com/forum/index.php

Fair warning. I don’t agree with their slant on things. They call folks like me "subjectiveists" because I go by sound quality and not blind devotion to objective test results. But who knows, the test results of the Topping DACs are very good.

I had the Pro-Ject’s Pre Box S2 Digital DAC for a while and it wasn’t bad. I also had a Schiit Modi Multibit that I licked. But I have a Chord Qutest DAC now and love, love, love it. Unfortunately, it’s $1800 so above your budget.

PS. The Bluesound Node2 can be bettered - but get a dedicated DAC first.

I'll second the recommendation of the Pro-Ject Pre Box S2 Digital. I have one in my office and think it's exceptional for the $399 price. I've compared it to the Bel Canto DAC 3 in my main system and it's close. It's also a very good preamp and headphone amp and won an EISA Best Product of the Year award for 2017-2018.

Yes, spend more.
No. not a fortune.
$1,200 will do it.
Buy used.

Benchmark 2 or 3.
Chord Qutest

Worth it.

Spend a bit more for a MHDT DAC, R2R, non over-sampling, no digital filter, no op-amp with a Tube :)

I have created a separate linear power supply for my Khadas tone board generic edition, and I bought a Nordost USB cable.
Well... this combo greatly improved the sound quality of the Khadas.
I have done 2 blind listening tests with friends, against the Schiit Gungnir and the Denafrips Ares II.
Nobody, I mean nobody was able to identify the Khadas. LMAO.
So clearly the winner is the Khadas tone board generic edition if we compared the sound quality and money.