Schiit Modi 2 and Magni 2 on Ubuntu 20.04: Analog or Digital Output?

[kjakeb]

I have a Schiit Modi 2 DAC and Magni 2 amp hooked up to my Thinkpad p14s AMD. The Modi 2 DAC plugs into my Thinkpad via USB, and the Magni 2 amp is connected to the Modi 2 DAC via RCA cables. My headphones (Sennheiser hd600) plug into the Magni 2 amp. In my sound settings on Ubuntu 20.04, I have two audio output options of interest (i.e. other than just the built-in headphone jack output): "Analog Output - USB Modi Device" and "Digital Output (S/PDIF) - USB Modi Device." Right now I'm using the "Analog Output - USB Modi Device" output and it sounds fine, but I'm not sure whether I should be using the "Digital Output (S/PDIF) - USB Modi Device" for better sound. I get sound out of my headphones when I select either one, but the "Digital" option is a bit louder. I assumed that with the "Analog" option the digital signal from my computer is going to the Modi 2 DAC via usb, gets converted to analog, goes to the Magni 2 amp, gets amplified, and then goes to my headphones. Is that correct? I'm confused since I'm coming from a Mac where I only had one sound output option for my Schiit setup. Should I select the "Analog" or "Digital" output option for the best sound? In other words, I just want to know what the signal chain looks like when I select the different output options. Which option should I select if I want to send the digital signal from my computer over USB to my Modi 2 DAC, have the DAC convert the signal to analog, have the analog signal sent to the Magni 2 amp, have the signal amplified, and have the amplified analog signal sent to my headphones?