I'm not using the DAC3's volume control (am using a preamp), so I don't really have a perspective on that yet. But since the DAC3 upsamples to 24/192, theoretically it has 8 available bits of resolution to use for digital volume control without losing resolution, so I assume it would be fine (as long as the output sensitivity of the DAC3 was a good match with whatever amp you are using)...
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