Oh I recently set up pHAT DAC in Lakka OS to get sound out of the Pi Zero for sweet, sweet retro gaming goodness, it worked, I just needed the overlay and one blacklist entry adding.
It looks like my instructions target a slightly earlier OS version and need updating.
As far as I can tell, no removal of anything from the backlist is needed, but to make the pHAT DAC the default audio out you'll have to add a blacklist entry for the bcm2835 sound module ( as mentioned in the guide ).
I'm still trying to figure out if there's a configuration method that will leave both cards enabled but make the DAC the default. Right now I think they are listed in the order that they load, and the BCM audio is always first.