Some of these replies are technically over my head, so I will give a simpleton's explanation of what I am hearing in my latest system which I have been running for about 6 months now.
System:
Jay's Audio CDT3 Mk3 CD Transport
Holo Audio May Level 3 Kitsune tuned DAC
Primaluna Evo 400 Preamp
Primaluna Evo 400 Power Amp
Klipsch Cornwall 4 Speakers
Rel S812 Woofers (2)
Most reviewers agree that the Holo May sounds best in NOS mode (though it will upsample quite high if desired,) so I leave the dac on the NOS only setting. However the Jay's Audio transport has a toggle switch that allows for 4x upsampling (176.4) processed by the Transport, and I am finding that to be an intriguing setting with certain music and maybe with all music. The Holo May immediately locks on to the 176.4 sample being performed by the CD transport but is itself not doing any upsampling.
My system became more accurate and discriminating after I attached some home made signal "grounding boxes" to the CD Transport, DAC and REL's and built a heavier and more rigid component rack. All of these tweaks have brought the system to a higher level at which point I could switch back and forth between Redbook and 176.4 and hear more of a difference between the two. However, the 176.4 definitely sounded smoother with slightly better instrument separation though accuracy of timber and tone may be somewhat distorted. The mids - especially vocals - are more holographic and affecting at 176.4.
I.E., I am apparently wishing for a blend or marriage of these two modes, but wondering if it is possible and how I might go about it.