Yeah not every thing is available in lossless, you just have to work with whatever format you’ve got
I personally think it would be alright inputting a AAC (M4A) into PN. There is no M4A output option so you’ll have to output it as a 320 MP3.
DJ edits are best done with Wave files. Also Audacity does not allow you to import a M4A file normally, you have to download a plug in.
If you did do an edit with an M4A using Audacity and then PN the file would be quite degraded by that point.
Don’t know if it would be good enough to play but probably be best to play it on its own at its normal BPM rather than mixing it with another tune in a set.