1. Start with a directory of ALACs (extension is .m4a). The format is lossless.
2. Check "Only convert files with a lossless format" and set your encoder to anything (mp3 or flac in my testing)
3. Click "Preview" on a virtual device to preview how it will be sync'd.
4. Note that the action for the ALACs is "Copy".
In #4 I expected the action would transcode the ALACs to MP3 because they are lossless and I have "only convert files with a lossless format" checked.
Perhaps they are being identified as AAC (a lossy format) somewhere?
My library is a mix of flac, alac, aac, and mp3, so this behavior means I can't use MediaBee to synchronize my library to a device.