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Short question: does VarAC work with QRP-Labs QDX?
No, the way the QDX generates a signal by modulating a narrow band carrier it can not support VARA. As noted on the QDX main page "QDX transmits a SINGLE SIGNAL, it is not an SSB modulator with associated unwanted sideband and residual carrier, or intermodulation due to amplifier non-linearity. QDX outputs a pure single signal."
Sorry to hear. This makes VarAC much less interesting to me. So VarAC only works with a SSB transceiver, correct?
The QDX is very unique in how it takes a very narrow FSK signal and then modulates it's TX. No other radio I am aware of does this.