The DAC can input and process 24bit by 192hz but if you look through a few of my posts a few pages back( I'm lazy) you'll see one of the developers that did the rockbox prove it can not actually output 24bit. I think it can max output 16/48hz
I think the dynamic range tests I saw were more like 17-18 effective bits, so it might be worth trying that, although I think the difference is unlikely to be noticeable. I don't have a player to test with though so I'm just going by what was posted online.
At the end of the day there is absolutely no reason a person with a x3 would keep tonally issues for an increase of 1-2 bits of higher resolution.