It's basically the combined result of:
A) Google deciding to make 48KHz the standard for audio in Android.
B) The ESS DAC lacking native support for 16/44.
C) LG neglecting to solve this in their driver for the Quad DAC (or the Android mixer).
There is a mix of stupidity, ignorance and arrogance involved in all three of these: The assumpting that "nobody will notice" (the upsampling) and that some day we'll put 44.1KHz behind us anyway (it being idiotic in the first place).
I am not an Android Dev, but I believe this could be solved by modifying the Android mixer to perform bit-padding (like UAPP and Neutron) when receiving 16/44 content: Adding zero bits to turn it into 24/44 (a harmless conversion) and send it directly to the DAC in this format, which it DOES natively support.
This would NOT address down-sampling of HiRes content to 48KHz (as
@SteveOliver found happens with the Qobuz app). That would require another modification to the mixer.
LG should have made both of these modifications form the get-go. Between V10, V20, G6, V30, V35, G7 and now V40, they've certainly had enough time and opportinity to do it.