Thanks Frank. My mpd.conf is now writeable, but adding the format line to the file and restarting mpd does not make any difference. If I play an mp3 stream, the playback display shows 24 bit, and this is confirmed with a 'scope on the hardware.
I would be interested to know how this should work. Does MPD re-quantize the output from whatever software decodes the mp3, or does it instruct the mp3 decoder to output 16 bits?
https://pastebin.com/Wi7L6Dg6