By lossless they mean “losslessly compressed from source” (FLAC, or likely in Apple’s case ALAC) as opposed to “lossy compressed” like MP3 or AAC streaming serv

By lossless they mean “losslessly compressed from source” (FLAC, or likely in Apple’s case ALAC) as opposed to “lossy compressed” like MP3 or AAC streaming services usually use. Wether or not the original recording was done/mastered in 24/192 or higher/lower is a whole other question. In the grand scheme of things all ADC involves “compression” in the form of quantization.