USB-C gets complicated at the high end, but for basic functionality I think the standards committee did a very good job at making the cheapest way to do it the correct way, e.g. a USB-C to 3.5mm audio adaptor can be entirely passive, it just needs the right resistor in it.
How does that work? is each USB-C host port, or downstream USB-C hub port required to contain a stereo DAC? Does the standard impose performance requirements like dynamic range, noise, minimum sample rate,...? Does it also mandate the jack can be used for mic / line-in? Does it similarily stipulate inclusion of an ADC in each port?
The data pins are repurposed for analog audio, so it won't work with hubs. You'd of course need a DAC for output and an ADC for mic input, but the point is to replace a headset jack, so you'd have those already.
https://www.usb.org/sites/default/files/USB%20Type-C%20Spec%... (PDF, page 309)