Musetec (LKS) MH-DA005 DAC

Supposedly, the latest M1 mini will only use a max of 39 watts power (which is 3.25A at 12V):

https://support.apple.com/en-us/HT201897

The previous mac mini's used up to 122 watts, which is 10.1 amps.  You really need the huge Teradak 13A power supply for this (only game in town that provides that much current).

If' you are running a M1 Mini, I think you can get away with a lower sized power supply and end up with a much better result than the Teradak.  You could get the internal power filter:

https://www.ebay.com/itm/184685135284?hash=item2b001785b4:g:ICcAAOSwMmhelgMm

Then look at a much nicer LPS.  I suppose the Uptone JS-2 would work here if you like that model.  You can also look at the Keces P8.  The Keces has a very large 35,200uf capacitor bank and uses 4 transistors in parallel to supply the output current. (the Uptone looks to have a huge capacitance as well).  DO NOT buy the 4A Teddy Pardo for this application as it is very inefficient and will get extremely hot!  Teddy Pardo is really only good for loads up to 0.6A.

Even though the M1 mini will run with a 4A linear power supply, I would highly recommend getting a much larger one to allow for smoothest current delivery and regulator heat dispersion.

My take on even 004 modded to your level, can't replicate 005 ultimate sound quality.

I would agree.  The specific list of modifications that fmzip listed out will definitely help the sound quality of the 004, but it doesn't address all design problems.  The Crystek 957 clock is an improvement over the stock clock, but it is somewhat laid back in sound (more like a McIntosh sonic signature).  Accusilicon clock is much better if you cannot work in an OCXO.  The bumped up 10,000uf Mundorfs will definitely help, but in my opinion, Mundorf Mlytic are already compromised as they essentially place a "veil" over the music.  Upper mids/highs lack attack and speed, bass is not as strong/full.

The further problems are all on the digital power supplies where the stock caps are severely undersized.  This presents higher ripple on the regulator outputs and also weakens bass response.

The Uptone JS2 won't work with M1 mini, internal power supply not compatible, its designed to accept SMPS.

Maybe you can expand more here.  The first link I provided is the Teradak internal filter.  It has a 5.5mm x 2.5mm standard DC socket.  It's just a matter of connecting a standard linear power supply of adequate value.  Teradak might be doing something specific with their internal filter, but there is nothing special about their linear power supplies.

The Mac Mini runs internally using 12V DC (direct current). All electronics run with DC direct current with various voltages.

The Teradak internal filter completely replaces the internal SMPS (switch-mode power supply) and it provides a 5.5mm x 2.5mm socket that you can connect to any standard 12V linear power supply with adequate current capability.

It doesn’t matter whether the 12V DC current is supplied by the SMPS or a linear power supply such as Teredak, Uptone, Keces, etc.. It’s the same result either way.

Here’s a video showing the whole process. It requires disassembly of the mac mini, but you can do it with careful patience.

https://www.youtube.com/watch?v=iUZMYy45CRs

The M1 mini disassembly might by a little different, but the basic principle is the same.  Here's the M1 disassembly:

https://www.youtube.com/watch?v=R4ArjHz4gd4

I don't know about the 005 reliability (melm can comment better here), but my DA-004 is probably the best quality circuit board I have worked on.  Very thick board with thick excellent quality tracings and high quality very durable solder holes (through hole barrels).  All parts are definitely not cheap parts.

Reason I'm saying this is EVERY format, DSD, FLAC, WAV has their own circuit.

I know this because initially I was using my FLAC library and then after about two weeks I started playing WAV, it was terrible. Took another week for the WAV to sound well.

I don't think this is actually true.  FLAC is a music data file compression method.  Your player will read the FLAC file and uncompress the data on the fly.  The actual data stream that is sent to the DAC needs to be in either PCM or DSD format.  That being said, DSD could be handled differently inside the DAC digital receiver section.

@lordmelton You are likely hearing something different about how the player is processing FLAC files when compared to uncompressed WAV type files.

My past experience revealed a distinct difference on how some players or software deal with FLAC.  On some software players, FLAC performance is significantly lower than normal WAV.  I think I was using an older version of MediaMonkey and it has lower resolution when playing FLAC files.  When I tested Jriver, there was no difference between FLAC and WAV.  Since the player/software has to uncompress the FLAC data on the fly and then clock/transmit that to the DAC, the player logic can be different and this can definitely affect resolution of the audio.

The DPLL setting tells the LKS how long to examine the pulse timing on the digital inputs (spdif/usb).  The lower DPLL numbers will result in higher resolution and higher sound quality, but your digital transport/source that connects to the LKS better have a damn good clock and power supply.  If you have a poor transport, then you may have to increase the DPLL number setting.  You can tell if you have a problem because the music will have skips/dropouts/chirps every so often.  I would recommend starting at DPLL 01 and work up one at a time from there until your music is able to play without these skips/chirps.

On my system I am able to play PCM up to 24/192 on DPLL BW01 perfectly.  When I do DSD over the USB input, I have to switch up to BW03 or BW05 depending on the bitrate (DSD x2 or x4).