Plex Media Server - Best hardware connection for Intel NUC

Server Version#: 1.19.4.2902
Player Version#: 1.12.0.1232

When I setup Plex Media Server on my Intel NUC and connected it to my home stereo, at the time I did it how it made the best sense to me to get the best sound quality.

But is how I have it connected the best way? Is there another way I should have it connected that would give me better sound quality? I don’t know I have only ever heard my PMS connected to my stereo so I have no comparison.
So how do you have your PMS connected to your stereo and what is the best method?

Here is my system and a little info;
Marantz AV8805
Emotiva XPA-7 Gen 3
Emotiva XPA-7 Gen 3
Oppo UDP-203
Samsung Q8FN 75"
Amazon Firetv
Intel Intel NUC i5 ( Plex Media Server )

Speakers
B&W CDM7 SE Fronts
B&W SE Center, Surround side, Surround Rear
Atmos Ceiling, Subs

Cables
XLR
HDMI 2.0b

Intel NUC running PMS is connected to Marantz AV8805 with short HDMI 2.0b.
About 200 CDs are ripped to NUC in FLAC
About 400 singles in MP3 low and high resolution, I am slowing replacing all of these with CDs.

Settings on NUC
When listening to music I have the 8805 on Direct, so the signal does not go through any processing or filtering.

NUC is running Windows 10. When going to Sound - Playback, it is showing the Marantz and connection is HDMI.
Which means the Marantz is the DAC, the Marantz is doing the audio processing right?
This is one thing I am unclear on, is it better to have PMS or the Preamp processor do the audio processing?

It sounds good to me but I don’t know that I have the best ears and just want to make sure I have everything connected in the right way.
Thanks for any info, help.

Will

Anyone?

Everyone running Plex Media Server on a PC, how are you connecting it to your home stereo?
HDMI, Cat 6, Toslink?

Have you made any changes to settings in Plex or Windows?

Thanks,

Will