Digital Audio Extraction works a bit differently from the standard "play" mode. The first is much slower than the second, so any skips, etc, could cause greater problems. DAE is so difficult in fact that CD players include sound cable connectors for doing standard play mode instead.
98SE for example defaulted to standard audio mode, while XP assumes your CD reader is modern enough, and your CD's are in good enough condition, to do DAE in real-time.
Most CD players also have a 2-pin S/P-DIF connector as well as the 4-pin analog. So it IS possible to get "digital sound" without using DAE.
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