Is bitstreaming (ac3/dts) supposed to work with any usb audio device?
I was trying to use Creative Omni Surround usb sound card with Steam Link's Virtual Here - analog output worked good, stereo spdif output was sometimes ok, sometimes not, but dts/ac3 were totally stuttering.
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VirtualHere sends exactly what it receives from the USB device. If its jumpy the cpu is probably maxed out on the steam link, so that introduces latency and hence the stuttering. Another customer was experimenting with audio quality via virtualhere and he discovered if he used a program called https://www.vb-audio.com/Voicemeeter/ and put the voicemeeter input end to the usb device via virtualhere and modified the output side so that the buffer samples is maxed at 2048 that solved the stuttering. There were clicks everyone once in a while so he changed another setting called Synchro delay to just above your latency, like the nearest 5-10 Ms and that fixes the clicks. And he says it works fine now (with his headset) so give that a try if you want.