Of course it works. The thread has been all about how it works with DAC's. There are hints that the optical signal bypasses the internal DAC, so we could assume that the EQ is bypassed also. Unfortunately, no one ever posts proof here, just what they hear, so nothing can be settled for sure. That is the reason I suggest checking for yourself. Since you've been here for a couple of years, I can assume that you've noticed that there is very little proof given for opinions here, so I was suggesting only that you help yourself so you can know for sure whether the EQ affects the LO for sure.
If my last sentence of mine sounded tart to you, it wasn't meant to. I only meant: would the EQ passing onto the signal be a problem to you? And if so, for what reason?
In other words, I wanted to know if you had a specific use for the player that would would be hampered by just turning off the EQ - that is, if the EQ does indeed pass on. I just couldn't figure out how to say it!