The algorithms in M5000 handle bypass in different ways.
In the case of MD2 the signal is always passed through the DSPs to keep a constant delay. The width of the delay is 24 bit, but bypass is not bit transparent like on Finalizer, DBMax or System 6000.
When bypassing the Toolbox, the Toolbox Delay and Lowcut filter are still active in order to avoid audio glitches.
The signal is un-dithered but at 24 bit resolution. The DSP capabilities of the M5000 unfortunately don’t allow for extensive double precision processing like on the System 6000.