after the november update xbox one outputs stereo instead of 5.1 through optical

"I like to play games and watch movies with an Astro surround-sound headset, which decodes Dolby 5.1 audio from an optical input cable. However, the Xbox One is currently only able to output stereo and DTS Digital through its optical output. My headphone
receiver can't read DTS Digital, so I have to output in stereo, and my surround headphones turn into regular old headphones. I've been asking Microsoft for the last week if they intend to add Dolby output to the optical audio port in the near future (it's
an option for HDMI output), but haven't gotten a solid answer on whether a fix is coming."

An optical cable simply can't pass 5.1/7.1 uncompressed, only HDMI or multichannel analog can (the latter of which the Xbox doesn't have). As such your headset (presumably optical) does NOT and cannot support 5.1/7.1 uncompressed. Instead it supports 5.1
Dolby Digital (DD=compressed), and virtually creates 7.1 from the 5.1 through processing (optical can't pass 7.1 DD+ either, only 5.1). Currently, the Xbox One cannot output Dolby Digital 5.1 over optical, which is why you do not get surround sound in your
headset. It is also not surprising that your TV is not handling 5.1/7.1 uncompressed properly, as that is something you really need an audio receiver to handle. What is probably happening is your TV is downmixing the uncompressed 5.1/7.1 to some sort of stereo
(2.1?), resulting is loss of some audio channels. The rest you hear as"virtual surround sound" created by your LG system.

The solution for you is to get a proper audio/video receiver (recommend Onkyo or Denon) that has HDMI inputs, can handle uncompressed 5.1/7.1, etc.; OR wait until the One can output DD 5.1 over optical, When the latter happens, keep in mind that most TVs
will NOT pass DD 5.1 out over optical. Perhaps yours does (some Vizio models do). If yours doesn't, you will never get true DD 5.1 (just because you hear sound from all speakers doesn't mean you are getting true DD 5.1) from your current setup and would need
to run the optical out directly to your LG system, instead of through the TV. Hope that helps.

I had to goto my DVR box and under audio output select HDMI over PCM or Auto.

Then I ran my optical cable from the XBOX to the receiver, the receiver is set to optical input. Also I don't believe the xbox one support 5.1 yet, so you'll need to make the DVR output Stereo or DTS.

Right now the xbox one output optical TOSLINK 5.1 threw DTS surround. DTS is actually better then Dolby 5.1 but some audio equipment doesnt have support for DTS, dolby toslink support is set to come next year, but right now 5.1 with toslink is possible
(ive been using it) but only if your recieved supports DTS. Best option you have now is to set the toslink optical to stereo, and then use your dvd player to put it into Dolby Pro Logic II mode. This mode a simulated 5.1 that takes a stereo signal and makes
it a kinda fakish 5.1 while not true 5.1 is will be better then just 2.0 stereo till dolby is patched in.

from what i gather at the moment is that the optical output is stereo till they patch it (would be sure that will be soon though) but the hdmi will be 5.1 and 7.1. but if you cant wait for the patch and just have to have the 5.1 then there are hdmi adapters
that have an optical out incorparated in them, or if your tv has an optical out you could use that