I may not be asking the right question. I had seen the format of the ,WAV file, but it makes little sense to me. I "understand" at a basic level bits and bytes and ASCII characters. I have used a disc editor (many years back) to study MBRs (mainly DOS and Win 2000) and assorted files to see their formats.
So when the computer reads the bytes in a .WAV file, does it just reproduce the bits and the DAC does the rest? Could it be that simple? Nah.
A ".wav" file is what we call a multimedia container. It holds audio data in this case in a structured way so that for example you can jump to a specific time. Think of it as a folder that holds things. It has a header that says what is in it and how to interpret it. That is we can easily look at the properties and see the sample rate, bit depth, etc.
A ripping program reads the PCM audio data from CD and then encapsulates it in the .wav format for compatibility. That way any program that can open/play a .wav file, will know how to do it.
At playback the reverse happens. A media player reads the header of the .wav file to see what it sample rate is. In a computer, it will then tell the operating system to in turn tell the sound device (e.g. a USB DAC) what sample rate it/bit depth it will be asking it to play. It will then proceed to read a chunk at a time from the .wav file, strip away all but the PCM data and send that to the sound device. The sound device will read the data as fast it needs to produce a real-time stream of data.
All in all, nothing in the PCM data gets converted. We are simply taking it out of the CD optical format container, and put it in the .wav container format for editing/playing.
.flac files are another container format but again the PCM data is universal. In the case of .flac, the PCM data is losslessly compressed. So there, there is a conversion. At playback, that lossless compressed stream needs to be expanded back to PCM and sent to the sound card.
Apparently one can tell the computer to sample the WAV file at different rates, not just the rate it was recorded at, etc. I have read things (some time ago) that the digital "sound" is in an envelope, etc and all seemed so complicated.
The first part is a function of software in a player. Once PCM data is read from .wav or .flac file, it can be resampled in software to other sample rate. As long as this conversion is done faster than the music plays at that rate, it will playback OK. Otherwise there will be a glitch. The moment you resample the files, the bits by definition change. So you are no longer dealing with same set of bits as they came from CD. Sample rate converters can change the frequency response in addition to introducing errors. On the other hand, the DAC playing the resampled file may do a better job than dealing with the original bits. Regardless, the differences will be very small -- certainly smaller than what people report in subjective tests.
The second part you mention is indeed talked about but is flat out wrong. The container, e.g. the .wav or .flac will have no impact on the value of the bits stored in them. "bits are bits" in that regard.
In theory, the work that the computer does will be different in reading a .flac or .wav file (since the former requires decompression of PCM bits). People use this knowledge to automatically conclude that the DAC will get polluted with CPU noise and hence, the sound will be different. Reality is that the CPU load for that is extremely small and at any rate, all but the worst designed DACs are not sensitive to such small changes.
Unless clearly demonstrated otherwise, there simply is no truth that the container makes a difference in how audio is played.
Let me know if you other questions on this.