Honestly, I don't know enough about this stuff to be able to speak with certainty. I can only speak based on my own experiences and observations.
I heard about the MQA digital out limitation in a youtube video that was very critical of the MQA format as a whole. Since I didn't want to use only this source, I did a quick web search.
According to the
official MQA page, it seems that the first unfold can be done through software or on devices with digital outputs. Any further unfolding is done through a "MQA Renderer" or "MQA Full Decoder" and doesn't seem to support digital outs. According to
the shanling EM5 product page, the EM5 supports 8x MQA playback (3 unfolds).
What this tells me is that the EM5 isn't acting as a core decoder, but a full renderer, and in order to support MQA digital out, it would have to remove the last 2 unfolds from the rendering process and it would no longer be "8x MQA playback".
As for UAPP, it seems that the MQA plugin you can buy is a "MQA Core Decoder", meaning it only has 1 unfold and can pass that data digitally to a DAC that can act as an MQA Renderer or MQA Full Decoder.
Hopefully this helps, and I'm also willing to be proven wrong if my info isn't accurate.