If the issue is specifically 24/192 PCM file playback via Toslink to Hugo, please ask him to try/test using the 'freebie' mini-Toslink<---->Toslink cable that came with his Hugo. It should be in the box somewhere.
It may not look like much but this cable from Chord should 'enable' 24/192 playback flawlessly.
If this works, the 'issue' is likely to be the other 'thin' cable.
If this does
not work, then it is v.likely that the issue lies elsewhere.
3 things to bear in mind:
1. Insertion of the Toslink plug on the Hugo-side should be proper... with a soft audible click indicating optimal insertion.
2. The AK320 should be set to the 'Line Out' in its 'Settings' menu.
3. May sound silly... but the Optical Input (green) should be selected in the Hugo. And, the Sampling Rate Indicator only lights up (deep blue)
after 24/192 file playback is initiated on the AK.
May be worth a shot to identify/eliminate one possible factor. Let's see how it goes.