You are looking for a playback option called "lossless". There is no such thing. "Lossless" is a property of an audio file.
It is like "color" or "black and white" are properties of photos not of the monitor.
If you want to hear lossless audio, your first step is to get a lossless audio file. You can make one yourself if you have an audio CD and a CD reader. Or you can buy lossless audio from some place that sells music
- Open the Apple Music app.
- In the menu bar, choose Music > Preferences.
- Click the Playback tab.
- Under Audio Quality, select or unselect Lossless to turn it on or off. From here, you can also change the settings for streaming and downloading lossless.
- Lossless for a maximum resolution of 24-bit/48 kHz
- Hi-Res Lossless for a maximum resolution of 24-bit/192 kHz
I think it'll 'magically' appear in Preferences once the service launches (next month?).
I don’t see the settings on my iPhone either, even though it’s mentioned in the article.Although Apple's support says the setting is under Preferences/Playback the only place I saw the lossless selection was under Preferences/Files/Import settings. My playback is the looks the same as your screenshot with not option for audio quality.