Dear Friends... thank you very much for taking the time to help me resolve my streaming problems with my Sony HAPZIES.
Special thanks to Eric_Squires / Big_Greg / Mahler123 for pointing out with settings and tech specs on streaming formats.
And Eric_Squires you were spot on right about usb handshakiing protocol issues with different devices!!!
For eg when the Mytek Brooklyn Dac or CHORD DAVE is connected to PC, the stream codes shows as what it is. 16bit 320kbps / 24bit 192khz / 32bit 384khz / DsD / MQA etc.
However when the MYTEK / CHORD is connected to the Sony directly it remains static with no display of variable stream info. Just displays 16bit 320kbps.
On a whim I purchased a IFI ZEN Dac which has visual variable colors for different stream inputs. Also it uses the latest usb 3.1 type A to B cable. When I connected this usb cable to the Sony & IFI Zen Dac and played different formats, the colour indicator changed to the relevant format coming into it via usb from the Sony. For eg blue for Mp3 , Green for 16bit 320 upto 24bit 96khz or Voilet for 24 /32 bit 192khz. Turquoise for DSD streams. Sadly the Sony does not stream or plays MQA. Hence no indication on the IFI ZEN dac which is MQA capble.
Conclusion : the Sony does play and stream all formats honestly in its native encoded formats. It does not use any shortcuts as I had assumed before this test. The reason why the Sony doesn't do the same with the Mytek / Chord I assume is because of the DACS using older USB 3.0 or even 2.0 versions of handshaking protocols that dont relate to the Sony well but works fine with PC's legacy protocols and hence the streams encoded data shows on display eventually. To conclude the SONY HAP ZIES HDD does what is built and configured for !! Missing out only on MQA .