How DirectShow Decides Which Filters to Use
MC supports a number of audio file types natively. When you play back a MP3 file, for example, MC uses it's own internal high-quality filters to split and decode the file and send it to the appropriate output device (sound card). When you attempt to play a file back in MC that it doesn't support natively, MC tries a number of different things to get the file to play. The first step is to attempt to render the file using DirectShow.
By default, if you haven't modified the DirectShow playback configuration options in MC, and you play a file back, it simply asks Windows to build the regular DirectShow graph. This works the same as Windows Media Player and any other DirectShow player does when playing back a file.
The default graph is built based on two factors: a) each individual filter "tells" DirectShow what kinds of media streams it is able to render, and b) DirectShow assigns (or more precisely, the filters assign to themselves when you install them) a priority number called its "merit score".
When you play a file, DirectShow attempts to build a chain of filters capable of decoding the content based on these two pieces of information. It tries filters matching the stream type, in the order of which filter has the highest priority first. If the "render" fails, then it tries the next highest priority set, and so on and so forth until it runs out of options or succeeds. Just because it "works" doesn't mean it's necessarily finding the "best" filter graph. It just uses whichever one it "bumbles" into that works first.
MC's DirectShow Playback settings dialog overrides the priority part of this sequence of events. If you select one or more of those filters, it overrides the normal merit score system (perhaps by temporarily elevating them to the highest possible Merit -- I'm not sure of the details of this mechanism). So, you can force it to "try" to use a different filter to play a file back, but you can't force it to use one or fail outright. If that graph fails (the output pins can't connect to the input pins to build a complete render graph) then it either ignores certain selected filters, or it fails over completely to the default graph. (MC's DirectShow Playback Settings dialog provides essentially identical functionality to ZoomPlayer's "Smart Play" feature.)
I've simplified this a bit for the sake of explanation, but that's the general idea of what happens when you try to play a file back via DirectShow.