On Zoom you can activate raw, non-preprocessed sound. (I never tried it and don't know whether it works well for music)
Ogg-Vorbis may be an even better option for all kinds of reasons, but mp3 is more universally recognized.
There's not much reason not to use Opus, which has better quality/bitrate and lower latency.
https://en.wikipedia.org/wiki/Opus_(audio_format)#/media/Fil...
It should be a matter of giving it enough bandwidth and let it make good decisions based on that.
https://support.zoom.us/hc/en-us/articles/115003279466-Prese...