Hi, audio engineering guy and Dolby Labs licensee here. There's several questions here, so I'm going to try to address each separately:
First, I think what you are meaning to ask is what is the fidelity of the audio but it's important to understand that all digital audio goes through a digital-to-analog conversion. Atmos is not an AAC format, but even AAC 256 Kbps is basically transparent... that is, it is indiscernible from 16-bit uncompressed stereo linear PCM which is sufficient to reproduce the analog sound wave with zero perceptible difference from the source.
The Atmos master file is ADM BWF, 24-bit 48 kHz which is greater than the Shannon Nyquist limit (the minimum sampling depth necessary to reproduce analog sound in the spectrum of human hearing, end to end, without distortion).
Atmos for the home is essentially Dolby TrueHD with a metadata layer on top. Dolby TrueHD is uncompressed 24-bits per channel, 44 to 192 kHz sample rate.
Apple can support lossless audio up to 24/192, so which format it delivers in is dependent on whether you have Dolby Atmos set to Automatic or Always on:
View attachment 2351680
If you have this turned off then what format it delivers depends on your general settings for playback:
View attachment 2351679
Then it depends on the DAC. If you're using Apple's internal DAC, it supports up to 24/96 so Atmos is supported but understand that Atmos is not discrete channel. It's discrete objects, and those objects will be down mixed to match whatever number of speakers you have.
It does not apply any additional DSP to "fake" spatial audio. What you will hear is a stereo mix unless you use the enhancer to create some arbitrary phase effects that give a sense of bigger sound... but this is a feature of Apple Music's Sound Enhancer and not Dolby Atmos.