I have the default sound card set for the HifiBerry Amp2 (sysdefault-snd_rpi_hifiberry_dacplus, HiFiBerry DAC+ HiFi pcm512x-hifi-0 – Default Audio Device, CARD=sndrpihifiberry) and I haven’t changed the command line options (they are -o hw:1 -V Digital).
I have just tested by waiting, as you say, a couple of minutes, and Squeezelite has indeed started up.
I am sorry to have wasted your time but I hope this topic might help someone else in the same situation!
My other problem with using Kodi is controlling the volume. I assume this is not something to do with Max2Play but if you know how to get the TV remote on HDMI CEC to control the volume on Kodi on Max2Play, please let me know; it’s driving me mad! The remote works well otherwise; it’s just the volume.