Problem setting up Raspberry Pi 3 with DAC

[nnila]

Hi,
I am trying to setup Mo0de on a Raspberry Pi 3 with a DAC going to powered (JBL 305p) speakers. 
I have got it to boot into Mo0de but I cannot get output to my speakers. 

End state, I am trying to set it up as a streamer and want it to receive Spotify. I even tested with local file though and no output. When I try stream from Spotify it can see it and connect to it, just 'play' will not start on Spotify and no sound comes out. 

The DAC is: Lusya Dual ES9023

I have followed the instructions found on that page for setting it up:

Code:

- nano /boot/firmware/config.txt
- find the line " # Dtparam=i2s=on" and delete the #
- Next find and delete the line "dtparam=audio=on" and replace with dtoverlay=hifiberry-dac
- Find the line dtoverlay=vc4-kms-v3d and add ,noaudio (note the comma - no spaces)
- Reboot

I then went into the audio settings page on mo0de and can see that it is set to hifiberry DAC. 
I also note that this is set (and cannot be changed):  ALSA: iec958. 

Overall I just cannot seem to get any sound out of it. 
Appreciate any help or tips to get it working. 

I have tried:
1. 3.5mm audio out on the Raspberry Pi
2. 3.5mm audio out on the DAC
3. RCA out on the DAC

None are giving me any sound output.