Hey thanks for looking that up, appreciate it. Yeah I know what you mean with gold plated stuff, $3000 power cables etc, that is just ridiculous and obvious snake oil.
I found the service manual, from the block diagram all analog inputs do bypass the DAC and anything digital. Analogs only go through a digital input selector and volume. The DAC seems to be positioned in a different section altogether the way it's shown, probably a different pcb.
Only the digital inputs go through the DAC according to the service manual. That's the HDMI to which I hear sound degradation. The schematic also shows the DAC is actually AK4588 in the VSX 1021... similar to the lower spec'd one you mentioned for Marantz, Denon and Onkyo.
That is interesting, as different models often have different features and that's why I made it clear that I wasn't sure about the 1021.
The SM that I glanced were the 1020, 1025, and the 1018 models, in those cased, it would seem that the analog input signal flows through the ADC and then a mediocre DAC, one that is not as good as the Wolfson one that is used for the digital signal.
Just one cautionary note, the large level block diagrams found in many service manuals do not show all the details or even all the parts, so one has to drill down to the lower level, sometime to the schematics (such as in the case of some Marantz AVRs), below is what I found in the lower level block diagrams, but the higher level one only show the volume IC, but skipped the ADC altogether:
High level on, ADC/DSP/DAC not shown, so it would give the impression that analog input path "bypasses.."
Here's the lower level details shown in a later page:
This one clearly show the analog path does not "bypass..".
Another cautionary note is of course, there is the possibility that, like in the case of others such as Denon, Marantz, Onkyo, and some higher Anthem models, bypass is possible when you use direct, pure direct kind of modes, but the Pioneer SMs of the 1021, 1025 that are available, do not show that kind of details, then you can be 100% sure.
Hopefully your 1021 SM does show all the details.