@DJ and @Customer Service. First thanks for your constant attention to us and our needs.
DJ mentioned above: "There's no need to be playing back 44khz or 128khz audio, haha - that's ridiculous."
Could someone expand on that statement? * Why? * What is happening that playing back audio at these settings is not needed or even causing problems? * What is a good playback setting for this? * I've always been concerned with sound quality. I want the best sounding and natural to the ears playback, I've always used the highest settings that I could. When these settings are lowered to what is considered "not ridiculous", does the sound quality suffer to the extent that human ear could really tell? And if so, by how much?
If these questions need to be placed in a new thread let me know. In any case, thanks in advance for the insight.

Yes - that’s the right general idea, with one important distinction:
What happens on import
When you add a sound file to an ARC Soundboard, ARC processes it into the format that skill wants to use internally. So the file you imported is not necessarily played back in its original exact format.
That means ARC may:
Is that the same as compression?
Not necessarily.
"Compression" can mean two different things:
So in this case, it’s safer to think of it as conversion/resizing for playback, not necessarily "compressing to save space" in the classic audio codec sense.
What happens during playback
When you press play:
So yes, the audio is prepared before playback rather than ARC repeatedly reprocessing the original file every time you press play.
Why your 44.1 kHz files still work fine
Because ARC is handling the conversion for you, your source files being 44.1 kHz / 16-bit is perfectly fine. That’s why you’ve had no issues with sound quality.
Practical takeaway
For your use case:
If you want, I can also help explain the difference between: