I can’t specfically speak to use of the LMS but I’ll just say that, provided the LMS is just a ‘standard’ DLNA media server, you should have no problems using the DirectStream DAC as a ‘renderer’ (in the DLNA context). Even though the Bridge II is ‘Roon-ready’, it’s still capable of participating in a DLNA environment as a renderer. (Mine does on the latest firmware release.)
My 432 EVO music server gives me the option to use either LMS or ROON at any given moment. It absolutely works with the DS DAC. But, is your question, “Will it work?” (answer is YES!) or is it “How does it sound?”
LMS is not a UPnP server. There are plug-ins to allow it to be seen by UPnP servers as a source (seems to work well) and to play to UPnP players (tried it a long time ago and couldn’t get it to work). I suggest doing some research on the LMS board. No need to limit the search to the Direct Streams–if it will play to a UPnP player it should work with a DS.
So, I started off over 10 years ago with Slim Server (now LMS) and a Slim Devices Transporter and Squeezebox players. I ripped my entire CD collection to WAV plus CUE file, and more recently have started to add higher resolution downloads (up to 192 kHz/24 bit) to my collection.
One of the Squeezeboxes died recently, so I started to investigate other UPnP media server options to replace LMS but could not find another server which supports CUE files. I have literally thousands of ripped CDs so a server which supports CUE files is a necessity for me.
I retired all of the Slim Devices players and purchased an Onkyo TX-8270 as a temporary solution. It works with LMS using the UPnP/DLNA bridge plugin, but can be a little flakey… I haven’t been able to get it to play anything over 96 kHz/24-bit.
Anyway, my plan is to trade in the Transporter for a DirectStream DAC. I realize that the DirectStream is a UPnP capable player, I just have not found anyone who is using it with LMS…
PS. I’m sure it will sound way better than the Onkyo