Hi everyone, I joined this forum just to post this solution that I stumbled upon:
I too was having trouble connecting the Wiim Ultra with a DAC via USB. Tried different methods and cables, and thanks to this thread I came upon the solution (for my case, at least).
You need to use a 5V capable USB cable; it doesn't have to be powered, just a cable that is able to deliver such output. In my case, it was an old original OnePlus (phone) charging cable that is capable of "Dash Charging" (OnePlus' quick charge moniker).
Just Google "oneplus dash cable specs". When I used it to connect the DAC, instantly the USB output of the Wiim Ultra was no longer greyed out and it recognized my DAC (which is a Fiio K13 DAC by the way).
Good luck!