Glutinous rice is essentially pure amylopectin with almost no amylose. Toasted dry to 160–180°C the granules undergo dextrinisation and surface Maillard simultaneously, and the highly branched amylopectin structure collapses into a porous, friable matrix rather than a dense one.
Pounded coarse, that porosity gives an adsorbent: it takes up the free fish sauce, lime and rendered duck fat and holds them against the meat instead of letting them pool in the bottom of the bowl. Grind it fine and the pore structure collapses — you get paste, and the dressing separates out.
The nutty, popcorn flavour is the pyrazine fraction of the same Maillard reaction. Pyrazines are volatile, which is why the powder is made the same day rather than pulled from a jar.