Nyquist Shannon theorem, sure. There are situations where you'd use 32bit audio but not for mastered music you'd listen to at home really. Although people still won't believe you, hence the market for thousand dollar cables and other snake oil.
Since real-world DACs don't have infinite taps, either increasing the number of samples per second in the original audio or the number of steps done by the filter will improve how close it gets to the original waveform.
Would that apply to the number of bits used to represent the level as well? I thought that was mainly useful to give some additional headroom when editing?
(Obviously there's diminishing returns either way)
The bit depth, OTOH, is your signal-noise ratio (noise floor) when sampling/quantizing said audio. It's unrelated to Nyquist-Shannon. More bits gives you less noise when reproducing it. For CD audio, 16 bits was chosen to give an acceptable SNR of 96 dB.
Monty Montgomery (of xipf.org) has a nice YouTube video related to this: https://www.youtube.com/watch?v=cIQ9IXSUzuM
That's what I'm saying. Increase the number of samples in the audio itself, and the DAC can get closer to the original.