I have fiio k11 and i realized it has coaxial out and fosi has coaxial out and I tried setting it up like this and it all worked, how would they be different in theory and what role does the fiio K11 play in the setup 1 ? .All though I don't see difference in sound.Then you should be fine with this setup, you can play bit-perfect anything and DSD natively.
But you don't get software volume control on DSD.
I prefer to convert everything to DSD256 and bypass the DAC volume control, sounds better to me.
Set up 1 : PC => Fiio K11 ( USB in, Coaxial out ) => Fosi ZD3 ( Coaxial in, XLR out ) => Fosi Za3 ( XLR )=> Speaker
Set up 2 : PC => Fosi ZD3 ( USB in ) => Fosi Za3 ( XLR )=> Speaker
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