Good news, I was able to get this DAC configuration to work with music in a USB storage device and/or uploaded to the Android Monitor. The solution is to pay $8 and upload USB AUDIO PLAYER PRO (UAPP) from Google Play (requires you to setup your google account first).
First impression: I couldn't believe this was sound from my OEM Aux Input.
Gone is the crazy hiss and whining noise with some unrecognizable music in the background using the USB/EXTENSION/JITTERBUG/DAC>OEM AUX INPUT. The sound is now comparable to the oem side, but I'd give the oem side the nod right now. When paused I can still hear a faint hiss, which you can decrease by reducing oem aux input volume, but then note you're volume is not sync'd on both sides (oem/android). Even so, it's a huge improvement. AND there are still PLENTY of settings to adjust yet within UAPP. I'm really impressed by the levers UAPP offers to provide hifi music. There are tweeks you can select to clean up the sound, so I expect this to improve. This is significant enough that I can envision myself staying on the android side more often.
From what I can tell, the UAPP is the central player, grabbing your music files from the android monitor MUSIC folder (OR USB or SD) playing them, and sending the audio directly to the DAC and then on to the OEM Aux input. The android monitor does not need to talk to your DAC and that's good since they're incompatible.
Clarification, I'm using UAPP to allow me to use the Dragonfly Red DAC I already have in hand. I'm sure it's possible to find a DAC that is supported by the Android Monitor, however that involves more iterative research. Get a DAC that is compatible with UAPP (
http://www.extreamsd.com/index.php/hires-audio-driver) and you should be good to go.
UAPP also works with UPnP Servers. Right now I use JPLAY on my cpu, but I guess I could add that app to the android monitor and possibly improve the sound a bit more...maybe.
With all this said, sound is SUBJECTIVE to each individual. In my driving world, the oem sound is enjoyable and if I can get the android monitor close to OEM with volumes sync'd I'm happy.
NOTE: The first time I used the USB thumb drive I had, it played a little bit then shutoff. It then would not recognize the USB drive b/c it was not FAT32 compatible. It gives you a quick notification that disappears. Take it back to your CPU, in windows explorer right click on the usb drive and select FORMAT, select FAT32, done. Everything will be erased, so make sure you backup anything you have on there. It works now.
ALSO, I HAVE NOT CHECKED ANY OTHER SOUND SOURCES, IE: PHONE, VIDEO, ETC.
UPDATE, not working with CARPLAY...as of yet...I'm gong to try an Aux Splitter...???