Which Should Sound Better? / Common to screw-up Dithering?

["Leo Casey" <LeoCasey@comcast.net>]

Joe wrote:  "Also something to note is that the conversion from 96/24 to
44.1/16 is not as straightforward as it might seem.  It's another part of
the mastering process, and involves dithering, which actually adds noise to
a recording to reduce distortion of low-amplitude signals.  It's a
fascinating and non-intuitive part of the digital recording and mastering
processes."

Thanks for info Joe. I am only a little familiar with 'dither'/'dithering'.
So, Joe: 

Q1: Which of 2 hypothetical cds, in theory, should sound better: 

1) ADD: Using original 1979 master tape of 1st album, TOM VERLAINE, that
first converts the analogue signal to 96k Hz, 24 bits, and then does a
second conversion to 44.1 k Hz, 16 bits from which the commercial cd is
created and packaged. (****Assume, for sake of argument, the dithering is
done correctly.)

OR 2) ADD: Using original 1979 master tape of 1st album, TOM VERLAINE, that
directly converts the analogue signal to "just" 44.1k, 16 bits, from which
the commercial cd is created and packaged?

Q2: Is the dithering process to convert from 96k Hz, 24 bits to 44.1 k Hz,
16 bits commonly screwed up by record labels (like BGO Records or other
labels)? [Albeit cds are probably going the way of 8-track tapes : > ) what
with mp3s, cloud storage, etc. Except for audiophile nuts like me.]

Leo