I tested it with USB to my Android phone, after setting it to UAC1 in the menu. The pre-saved EQs do work. You can't access the app while it's connected over USB, so you have to set them in advance and then swap them on the menu. I made an obnoxious one boosting 1kHz 12dB just to be sure, it definitely works. They don't work over UAC2.
As far as I'm aware Fiio never said EQ worked on DAC mode on the BTR5. They don't have a FAQ up like they have saying it doesn't work over LDAC, but I don't see anything where they say it can work in DAC mode either. Closest I can find is them saying that they never said it did work in reply to someone else saying it doesn't, so I take that as a no.
yeah, btr3, the btr5 is their new product and is marketed as the next step up, so one would assume the information of a different device does not apply ;-)
www.head-fi.org
It does work on the BTR7 though, with UAC1.
As for "no worse than the Qudelix", the actual usability and functionality of the PEQ is a lot better on the Qudelix. Anyone specifically buying for EQ functionality, get the Qudelix. But no worse as in the Q5K only does UAC1 wired, and if you only want 1 or 2 simple PEQs (with no shelf filters) then this may work for you.