Hi guys,
i can confirm support for OTG/direct audio on my Lumia 950 XL with FIIO E18 Kunlun. It took me couple days to get it working but finally it works.
The issues I had was basically caused by the cables. Firstly i tried standard micro USB 2.0 <-> micro USB 2.0 provided by the FIIO with USB type-C male <-> micro USB 2.0 female adapter, which didn't work (for data connection with computer this cable works without any problem). Basically when I plugged in the DAC and turned it on, the phone didn't react and I hear strange repeating cracking in the headphones. I restarted the phone with DAC turned on and as soon as the phone booted up, it played know notification sound from Windows for new device. It repeated couple times (like when you don't have good connection plugged/unplugged ). The phone recognized the device as an external monitor. I was able to command the phone from DAC to play/pause, next/previous song, but didn't hear any sound playing. Other behavior was that after unplugging DAC I wasn't able to charge the phone until next restart. I tried multiple cables in this setup without any effect. I even reset the phone to factory defaults, which as well didn't help.
SOLUTION: Success came when i bought USB type-c data cable (USB type-c <-> micro USB 2.0). I plugged the cable to both devices turned on the DAC, phone played once the known notification sound and "Voila" everything works like a charm. Sound, control of the phone without any issue.
My question is: If the USB is standard and backwards compatible... How come that one setup doesn't work and the other does?