Dithering when using hardware inserts?

I use a lot of hardware inserts in Cubase 8 Pro.

Recently, I’ve been reading in a forum group where people are saying EVERY dac output should have dither applied, because you are always reducing bit depth in order to write to a file or stream to a D to A. So, that reduction needs to be dithered in order to avoid distortion that’s louder than the dither and builds up faster.

Make sense?

If true- or if the logic above is not relevant for Cubase 8 Pro for a specific reason I’d be interested to know- how does a user of hardware inserts use dither in Cubase when the d/a/a/d inputs and outputs are all done via the External FX setup tab in VST connections?

Thanks for any insight.