Weird, I'm stumped. I've heard of some issues with the new Windows updates but I have yet to encounter those myself. I'd email Yulong directly as well as any major distributor you can find (perhaps Grant Fidelity) to see if they can get you an older driver. Either that, or rollback your Windows update if you recall which one caused the problem.
Review: Yulong D100 DAC/amp - reference quality with a reasonable price - Page 79
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What happens to the signal internally should not have any bearing on what types of material the user sends it over USB. It's true that the ASRC chip upconverts sample rates and pads bit depth. But that all happens post USB stage. He should be able to send it whatever signals he wants up to and including 24/96. So there's some issue here.
Do you have access to another computer to try? Maybe have a friend bring over their laptop? I'd like to see what happens when Windows just connects without any specific drivers being loaded.