NAD M5 no sound from Digital Coax out SACD

SACD won't play through digital hook-up or DAC. Use a pair of analog interconnects from the M5 directly to an input on your pre.

SACD is designed so the end user cannot take the code from the machine. A few receivers can decode SACD via proprietary connections. No DACs can decode SACD.
Only the analog out from your SACD player will pass a SACD disc's music.
They are afraid someone might steal the music.

Thanks for the input. I learned something new.

Not sure how I'm going to hook things up now. I'm going from my PS Audio DAC to a NAD M3 integrated using the 1 balanced input on the M3.

So what do you think is the best scenario:

go from:
M5 to M3 via balanced for SACD
M5 to DAC to M3 via RCA for CD
or
M5 to M3 via RCA for SACD
M5 to DAC to M3 via balanced for CD

I don't have a quality RCA interconnect on hand to test out

On my Sony 5400, the digital out won't work when playing the SACD layer on hybrid discs, but it does work when playing the CD layer.