Although not directly related to the title of this thread, I want to put here what was the solution that finally solved all my problems:

The solution at post #136 although it solves the Squeezelite problem it generates a new one: the triggerhappy plugin stops working after 1 cycle of connect/disconnect of the DAC.
So, I used the newer solution proposed by paul (@pgf) in post #300

In the script I added the command to start the triggerhappy daemon:
Code:
# Commands to run when the device is plugged in go here.
                alsactl restore                                    
                /usr/local/etc/init.d/squeezelite restart      
                sleep 1                                           
                thd --daemon --triggers /home/tc/media.conf /dev/input/event0
I also want to say a BIG THANK YOU to all the people that contributed towards the solution in the Start/restart squeezelite when plug-in USB dac thread, but specially to pgf and chill, who spent considerable time in troubleshooting this issue and along the way offered really insightful information!
The thread, although long is really interesting for someone interested not only in the solution, but also in understanding how they arrived at this solution.