Sony HAP-ZIES HDD player is it only 16bit 320kbps native playback ?

Dear All...thank you very much for making time to answer my query... Really appreciate it Y’all !

However my problem still persists. I did check all the settings on Sony. And tried contacting Sony support but no response. 
I consider myself super tech in this regard and I will humbly accept anyone keen on pointing out my ignorance. I want to keep this stellar device for long because I am really enjoying the music for a change. 

Problem : When Sony usb is connected and engaged  to an external Dac the display shows 16bit 320kbps regardless of higher formats played. Even when listening to the Sony’s internal dac outputted to its own rca / xlr , the sound to my hi tech pro ears, still tells me, on blind testing that it sounds 16bit 320kbps.  And it sounds bloody marvelous In 16bit 320 kbps too after approx 300 plus hours of play. 
I am convinced the Sony is capably playing Hi-Res formats internally from its hard drive or when pulled over the network and then compressing or downsampling the formats bandwidth, to play finally in 16bit /320kbps either at its  rca / xlr or usb terminals..

My Delusion : This makes sense from an engineering point of view as compression puts let’s stress on processing, chips and cooling when working or resolving with big  hi rez formats. Compression on the fly, works the processor,  not dac and ram or bus channel outputs .  

And from Sony’s point of view as long as it sounds great even compressed  and keeps cost down with good profits then why not ? I read somewhere too on Audio-quest forums that they claim higher rez formats sound glorious when downsampled. This they do with their Dacs  Cobalt / Red / Black all maxing out at 24bit/ 96khz even though they load, analyse and process higher stream formats like MQA, Tidal, Apple, minus DSD formats.  And again to my ears the  down sampling techniques used by AudioQuest & Sony kills & thrills my ears over my other boutique units listed below in my home and recording studios. 

Audio Gear Home  : 
Preamps : Parasound JC2 / Cary SLP 05 / Jadis Reference / Naim 272 / 300Amps : Krell Evolution Monos / Naim 200 / 250 /300 Plinius SB301/ Adcom 555II
Dacs : Naim Ndac / Aurender N10 / Sony Hap Zies /  Mytek Brooklyn/ Chord Dave
Integrateds : Cary Signature / Rogue Magnum/ Naim Super Uniti 
Power Cables Supply : Shunyata Research Hydra / Audioquest Niagara’s  7000 / PsAudio
Cables : Transparent Reference XL / Audioquest Wildwood / DhLabs Reference
Speakers: Pure Audio Quintet 15 / Proac D40R / Magnepan 20.1/ Sonus Faber Elipsa 

To me it sounds like the Mytek might be downsampling.  I used to own a Mytek and there are a heck of a lot of options in those knobs.
why not just play the Sony using it own DAC and then you won’t have Audiophilia Nervosa?

Oops, I just noticed you said it happens with the Chord as well.  

Hello Mahler123... I tried the Sony’s analog rca / xlr  outs using Audioquest Fire / DhLabs Reference interconnects into premium SS. / Tube  preamps. It sounded glassy, sterile, cold.  
When streaming from PC the MYTEK Brooklyn/ CHORD DAVE displays the max value of my data stream 32bit 384khz spot on. The soundstage is thick, rounded and warm with highs  sparkling, mids tightly focused dead center and bass full with depth. I go all out with the volume. With no ear bleed or fatigue. With the Sony’s Dac output I have to press the brakes .

I guess I am just keen on catching the Sony foxing me on the formats ! 

Hello Guys / Gals.. I guess my gripe with the SONY HAPZIES is not that it’s recognizing and playing most HI-REZ formats !! But rather  not outputting that true format at its rca / xlr / usb terminals. I suspect we’re hearing a compressed down sampled 16bit 320kbs CD quality extracted & processed by internal DAC  from original Hi-Rez  formats stored on its HDD or streams pulled from network.