This is the first reaction I always get: "This is snake oil, and you don't know what you're talking about". While there are undisputed snake oils in audio and audiophile market, the difference I'm talking about, is not.
The idea of lossy codecs is they filter out the things you theoretically don't hear, yes. However, the presumption that you don't hear these when they are present is not completely true. Because they have a secondary order effects in overall sound.
The audible residue you claim that I don't hear when it's in the CD is the part of the sound which adds this instrument separation and soundstage expansion. Same is for higher sampling rates. While you can't pinpoint the difference with words, it shows itself as smoothness and "richer" sound.
Saying that you can't hear that difference is akin to saying "Human eye can't see faster than 30/60/X FPS anyways", which is not true.
When anyone presented with a lossy-encoded audio file produced with a state of the art encoder and not brick-wall mastered, will be impressed, yes. This includes me, too. However whenever you listen to the same file in lossless or, if present, higher resolution formats, with a sufficiently transparent audio system a couple of times, you start to notice the differences.
There are a couple of caveats in all of this audio business. First of all, you need to know how your audio system sounds and behaves to be able to discern differences. This requires time with the same system for a long time, to understand how it responds. In my case, I have the luck of having the same amplifier (An AKAI AM-2850) for ~30 years. I know how that thing responds to any genre of music, and I know how anything should sound at any quality level. Again, as I aforementioned, you need to do these ABX tests a couple of times back to back, esp. if you don't know the track, to be able to decode the details in sufficient manner. Digitalfeed's ABX test (https://abx.digitalfeed.net) understands this and makes you listen to the same thing 5-10 times according to your available time.
See, I'm an ex-orchestra player. I played in concerts, listened master recordings, and YouTube uploads of the concerts I played as well. I have also listened tons of CDs, MP3s of the same albums, etc. Some of the albums I listen have a captivating sound when I listen to them from CDs. MP3 versions of the same albums do not nail me to my chair, yet I can't leave the CD version of the same album to get a cup of tea. Both are ran through a Yamaha CD-S300 CD player with an iPod interface and MP3 playing capability over USB.
I can also write how CD tracking quality affects audio clarity, but this comment is long enough. In short, Yamaha's old CD-Recorder, CRW-F1 really improved sound quality by abusing Red Book standard by lengthening the pits of audio CDs. It reduced to capacity to 68 minutes, but it was worth it, esp. on lower end CD players.