I can see a couple of scenarios this may come into play but personally I wouldn’t.
1, where the digital connection toslink on particular hardware has 16/44.1 to 16/44.1 digital path and has volume management done digitally. It does give some quantitization errors and slight drop in dynamic range.
A good dac where volume control is either fixed on the digital side or done analog circuit could in theory sound better when the input device is runnnig a medium to low volume where on the Digital to Digital there is a certain amount of quantisation erroring going on.
But , in many adaptors ( most / a2b) in car audio the 16 bit audio gets reclocked using 24 or 32 bits before getting outputs to 96k-192k / 24 bit on toslink. I doubt anyone could pick any erroring .
2, Where the media source is hi res and the device output dac can do high res conversion but on its digital out limits the device to 16 bit / 44.1 and limits dynamic range to what 16 bit can do. I doubt I could pick it up,especially where it’s going to get processed by a downstream dsp. And the ADC would have to have an amazing dynamic range / low noise floor to be better.
As a side note modding car stereos and other input devices for spidif to toslink can either be done as per the earlier post or some will have I2S available on the circuit board ( like original old school cd players or raspberry pi’s )
A simple device like
I2S to toslink board can be added to give a digital audio bitstream to an existing device if a SPIDF stage isn’t available.