Why do others say lossless audio doesn’t work with Bluetooth?
If you have earbuds or wireless earphones and connect to your device via Bluetooth, chances are you're listening to Lossy audio. This compressed audio format results in data loss and, consequently, poor sound quality. It saves space and speeds up wireless transmission, and most people can’t tell the difference between lossy and lossless files.
On the contrary, lossless audio is a much more faithful reproduction of the original audio recording. It can be transmitted wirelessly, but the bandwidth isn’t sustainable to do this over Bluetooth.
Articles like this in Android Authority and the supporting documentation for Apple products say you can't get lossless audio through Bluetooth. They also say it doesn't matter since no one would be able to tell the difference anyway, and lossy audio is good enough.
Why is lossless audio better?
Lossless audio is the best form of audio as it has no drop in quality, and there is no data lost in the compression of the audio file. The audio you hear is as good as the source material.
If you have CD-quality audio, that's what you will experience. If you have Master Quality Authenticated files direct from a recording studio, that is the level of audio quality you will receive through lossless audio.