What is the audio flow of binaural output?

FMOD Studio
1

Can you please explain me the signal flow to achieve Binaural output?

I have a 7.1.4. setup in FMOD that goes to Unity. Now does UNITY take care of a binaural conversion or is it something I have to set up in FMOD? Basically I need 3 output variants.

  1. Atmos or 5.1 output for those who have a capable Soundsystem at home.
  2. Stereo for desktop speakers or embedded screen-speakers. (not sure if virtual surround can be simulated here)
  3. Headphones Binaural output.

I think I will go with creating different Mixer Setups in FMOD for that that will be set in the Game preferences. I see 3rd party add-ons like Atmoky Spacial Sound that can do that but I need to understand at which point in the signal flow the transformation takes place.