You can't use it as a DAC between the pre and the amp. If you want to use it as a DAC, you either do so upstream of the pre (as an input into the pre) or you hook it up directly to the amps, and then you are using it as a DAC+PRE.
Are you talking about a digital out from the pre? If so, you are correct. Like for home theater???
Correct about the bypass (second statement)
Are you talking about a digital out from the pre? If so, you are correct. Like for home theater???
Correct about the bypass (second statement)