nwtobin, that's a completely different thing! That preferences option refers to the audio device on the PC that plays back the audio to your speakers. It doesn't have anything to do with the audio format coming to you via Apple Music. On PC, all Apple Music tracks are still always LOSSY (ABR 256 kbps AAC).
Like I said, the settings in the preferences are for the software audio device that plays back the audio. That is basically always set to CD or DVD settings. Notice I said "settings" and not "quality"! That's because everything you listen to on your PC is converted to PCM/WAV just before it is played back through your speakers. Even when you listen to your MP3s in your MP3 player on Windows, the audio is converted by the player to WAV and then sent to your speakers. That doesn't mean your speakers play lossless audio. They can't, since you're playing MP3s. What comes INTO the player is important. If that's lossless then output will also be genuinely lossless. If what's coming in is lossy (as is the case with Apple Music on PC) then what comes out will also be lossy!