External DAC connection

Neither of those multiple connections appear to be utilizing the AV7701’s DAC since you state the final connection is to one of the analog inputs of the AV7701.

Why not instead keep it simple; connect Apple TV via HDMI into one of the AV7701 HDMI inputs? Or does the AV7701’s HDMI inputs not convert the audio portion of the HDMI signal? Is that why you are considering the Audio De-Embedder?

Also, I am somewhat confused: it seems rather redundant to feed Apple TV HDMI signal into the BDP105 & then feeding the 105 digital signal out via coax to DAC1; and then from DAC1 analog output to analog input of AV7701. Is there a reason you feel the need to use redundancy in that chain of connections?

Personally, I connect my Apple TV via HDMI to my Oppo BDP105 HDMI input & allow the BDP105’s DAC to render the signal - simple. I then connect BDP105 balanced 2 channel output to my balanced input of my Hybrid Integrated.

My recommendation is determine which DAC you prefer; either the AV7701, BDP105, or DAC1. If for some reason you prefer the redundant DAC’s in such a connection scheme, more power to you; I haven’t tried a redundant scheme myself, so I cannot comment on its merits

@ericjcabrera , excellent post. 
I would also point out Apple and pandora have pretty low rez output. You would do better with other streaming companies.
B

You really should just use the HDMI into your receiver, but if you are curious, you can usually use your TV to de-embed. Run HDMI into it, and then use the optical digital output to your benchmark.