I should explain my current thoughts.

LocalPlayer measn files areplayed directly by squeezelite - they are not
streamed (i.e no  transcoding or down resampling). So squeezelite has to
be able to play the files natively.

Your Squeezelite on the NAS cannot play Flac or MP3 file natively which
means if you try to play a MP3 or Flac file - squeezelite will do
nothing as it cannot decode the file format.

If you streamed (i.e. NOT using a Local player)  your file from a LMS to
your NAS squeezelite player - LMS will know the player cannot play MP3
or Flac and so LMS will transcode to a suitable format which can only be
PCM as the usual preferred MP3 and Flac options are unavailable.


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