I didn't wrote that in the "Fixed DSD Bypass" mode, the low-passed filter DSD data stream is remodulated by the sigma-delta modulator. This modulator intervenes in what SMSL names the normal "Fixed" mode.
I have outlined the DSD bypass mode of the AK4191 in red on the block diagram :
View attachment 420965
To me, it straightforwardly means that in this mod, DSD signals are just passed through a digital low pass filter before reaching the following DAC chip. The digital filter is most probably a FIR type. To my understanding, it is the same data-path the designers of the Burr Brown PCM1738 DAC have described in the document I have cited
here. Their drawing makes the principle of operation very clear:
The digital filter produces a multi-bit code at the same sampling frequency (FS) of the input DSD signal (k=h) or higher (k<h) than can be sent directly to the actual D/A converter stage (in the case of the AK4191 DSP, the following AK4499 DAC chip). The corner frequency and shape of attenuation of the low-pass filter can be tweaked by changing the coefficient (a0, a1, a2, etc...) and/or the number of delay lines (D) in actual use, hence the different types of filter available. Yes, the following conversion in not of the one bit type, but a multi-bit conversion working at very high speed (several MHz), same as the digital filter output sample rate.