It doesn't matter which input is used. When using the analog line input, then the WiiM Amp's in-built ADC will be used, but this has nothing to do with the DAC.
DAC stands for Digital to Analog Converter. Whenever you use an analog output (the speaker binding posts are the only analog output), the DAC will be used. Right now the only digital output (not using the DAC) is Bluetooth. Bluetooth uses lossy compression and is not intended for highest quality output, anyway.
A future firmware update will enable USB output, so the USB A socket can be used to sends a digital signal to an external DAC.