From a data preservation stand point, a compressed FLAC file is going to be exact lossless bit perfect copy of WAVE if you extract/convert the FLAC back to WAVE.
when it comes to real-time playback of FLAC file on an audio system, it’s going to incur more performance penalties vs WAVE file playback, there are probably some Software engineering workarounds(like decoding entire flac file to system memory as raw PCM data and do direct data streaming to DAC).
However this kind of workarounds do not work practically in a portable environment like in a Walkman which needs to reduce battery load and limit cpu/memory usage, so the Walkman has to do decoding of the flac file in a sequential portion by portion manner which induces more bursty like periodic cpu & memory I/O usage and power draw. This will likely impact sound quality slightly due to additional incurred periodic cpu/ram generated electrical noise and power draw during decoding/playback process.
You can always set FLAC compression to lvl 0 which means it’s basically an uncompressed pcm wave stream but with album art and editable track information. This is the closest to a WAVE file in terms of the system utilisation during playback.
I think this firmware engineer has the Flac vs Wave phenomenal explained in the most understandable manner:
https://www.audioshark.org/computer...uality-difference-between-flac-wav-15491.html