I'm no expert on this but I can make an observation and maybe bump this thread to those who do know more.
But I'm just looking over the details from this very sites review. I'm not so sure your DAC on the 7012 is the problem. I know the AVR is a few years old now but it's a very good piece I think.
Marantz’s SR7012 AVR is a powerhouse 9.2 channel receiver packed with the latest and greatest audio, video, streaming, and smart home technologies that will stand toe-to-toe with the competition.
www.audioholics.com
Anyway, I'm curious, are you using Heos.? How are you getting the music files to the AVR by way of the Optical? You're sending from the PC? I guess maybe I'm asking because it sounds like you're using the PC for the DAC instead of the AVR..? Or maybe I misunderstood your OP.?
Anyway I'm not entirely sure you need to spend money on a DAC or even a power conditioner. I mean with your budget I guess I'm not convinced you'll get a demonstrably better DAC than you have in your AVR.
Music via Heos, and wired sound just fine on my SR 6013. Not like a 2k DAC separate in sure, but I don't think I'd try to buy a $500 unit for improvement.
Let's see if someone who knows more can chime in..!