HiFyAK2020
100+ Head-Fier
In desktop DAC's that is what is happening - re-clocking and if possible with much more accurate clock - which makes the signal more precise and removes (as you said twister6 jitter. You can hear that by having a bit more resolution and accuracy in the sound reproduction.You probably aware that SPDIF output is just a digital audio output to connect to external DAC/amp. Thus, W1/W2 will add a clean digital audio output to your smartphone or laptop to connect to outside DAC/amp. Regarding what does W1/W2 do the signal, from the block diagram there is some FPGA DSP processing/buffering, but it hasn't been disclosed exactly what it does. Maybe it re-clocks the digital signal to clean up the jitter using local crystal oscillator (XO), or maybe does more.