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I know this device is marketed as a portable DAC/Amp combo however can this be substituted for desktop use?
Of course. I've been mostly using it as a desktop DAC/amp combo since I got it a few years ago.
Have you noticed any issues with your battery due to overcharging?
No issues here. Mine has never left my desk. Currently powering my HD6XX. Only issue I have is unit doesn't power down or charge when I shut off my computer. If I'm out of town for a few days the unit won't startup until it has a minimum charge. Not a big deal though.
You can shut it down with the power button!
Anyway, I did not notice any issues. It lost part of the capacity, but I think that's also due to the ageing.
Mine just had its battery swollen as a result. They have a bug in either the electronics or firmware that shipped with it. I believe its a firmware bug, but it cannot be expected to have everyone update their firmware. Let's see what they do now.