I just upgraded my DAC from a 2017 Meridian Explorer 2 (well-regarded desktop piece at the time)
Tried two different replacements. First was the new iFi Zen Dac Signature v2. Instantly audible improvement in all respects - five years of technological progress at desktop level. It could be an inexpensive “experiment” to see what passage of time has done to DACs. Probably need to check inputs to insure compatibility. I think easy to return if bought off Amazon - falls into the “why not try?” category of experiments
Second was Benchmark DAC3 HGC. Reaction: “oh, THAT’S what a DAC is supposed to sound like”. Not going to bother with all the adjectives. Kept it, love it. More than your budget but I think DAC2s may be going for the right price (most of my rig is 2nd hand). Again, check connection compatibility. No MQA, to the extent you are looking for that feature. Many, many choices at that price level, of course
I use Roon/Tidal, so can’t comment on CD transport stuff, or differences between digital outputs
Haven’t done much comparison on cabling - I use Kimber “Ascent” level (2nd level from bottom) for everything - good materials, well constructed - seems sufficient to me. Let’s me keep cabling to 10% of system cost. If it were me, I’d just buy I new CD player (incl DAC) at higher budget, rather than redo cabling
Let us know what you try along the way & what you decide to to!
Have a great day