It shows these sample rates in alternate text because thats what the audio buffer looks like internally. 2.8MHz 1-bit format gets internally stored as a 352,8kHz signal in the audio buffers, because we can't store single bits, we have to store bytes. One byte is 8 bits, and 2.8MHz divided by 8 is 352.8 kHz.
In short, it just describes how the audio buffers look internally, but in the case of bitstreaming, that information isn't exactly giving you an accurate picture.
Its just a different representation, but it doesn't actually convert the audio to PCM when bitstreaming.
Either you trust this information and MC to do the right thing, or I don't know what else to tell you. If the source file is DSD, and your DAC says that its receiving DSD input, then all you have to do is check the CPU usage on your system. Converting from DSD to PCM and then back to DSD would be extremely stressful on the CPU, while bitstreaming uses next to no CPU power.
Additionally you can always check the audio path, it uses more accurate information than the alternate text mode.