Yes, DACs have error correction. No, it is not the kind of ACK/NACK dialog you might find in a network, etc. where you might get a retransmit message. Think bitstream, a whole lotta bits coming down a one-way chute.
The kind and amount of error correction can also vary based upon brand & unit and obviously the chip(s) used in that unit. There is not a single universal implementation by all manufacturers, so there isn't a single simple answer to how much signal loss or dropout has to be detected before your DAC will mute or error out or do whatever it does for a bad signal. Some units may be able to handle a loss of 10ms of bitstream, some 100ms or more. And remember that the same basic technology for CDs in home high-end sets is used in auto and portable CD players, which also have to deal with physical jarring and loss of bitstream from the laser reader. Up to some point, buffers and interpolation can approximate quite a few missing bits and that is a form of error correction too.
The kind and amount of error correction can also vary based upon brand & unit and obviously the chip(s) used in that unit. There is not a single universal implementation by all manufacturers, so there isn't a single simple answer to how much signal loss or dropout has to be detected before your DAC will mute or error out or do whatever it does for a bad signal. Some units may be able to handle a loss of 10ms of bitstream, some 100ms or more. And remember that the same basic technology for CDs in home high-end sets is used in auto and portable CD players, which also have to deal with physical jarring and loss of bitstream from the laser reader. Up to some point, buffers and interpolation can approximate quite a few missing bits and that is a form of error correction too.