It was pointed out to me that most plugins output signals with a much higher bit resolution than 24 or even 32 bit. I confirmed this by using a simple plugin called Bitter that measures resolution of where ever it’s inserted. If I insert my external effects after a plugin that’s outputting a higher bit resolution than 24bit, is that signal being truncated down to 24bit at the outputs or is there a built in dithering process to avoid this distortion?
You have to choose dithering explicitly.