They most certainly doNot true. The AKM and ESS DACs which WiiM has chosen for the Pro Plus, Amp, Ultra have direct DSD Play capabilities; as do numerous other DACs (standalone or as components of Audio Equipment). There is no need / benefit to having a Server component Transcode DSD when that end-consumer DAC can directly receive and play the original DSD Audio.
The question is whether WiiM devices need to Transcode DSD to PCM in order to perform DSP (EQ/Volume), especially in a Transport-only role.