Bistream DTS and Dolby not giving 5.1 channels - rear not discrete

In the settings, you can turn off the sounds for the snapped app. It would make sense if one were to turn off snapped sounds, that the Xbox wouldn't have to do any encoding.

Right now, I select Bitstream (both DTS and Dolby) and my rear channels are NOT discrete. They sound like Pro Logic II, where a stereo signal is used to create rear sounds - basically the sounds leak out of the front speakers too.

I don't think the Bitstream DTS or Dolby signal I'm getting is 5.1 channels.

I don't think true 7.1 is available yet, but using PCM from the XB1 may decode it similar to Dolby Digital EX, which is 5.1 and then uses surround processing on the Rear Right and Lefts to make up the additional back channels.

Personally, after reading this thread, I'm changing my setting to Dolby Digital 5.1, since I have a THX Ultra 2 Plus. certified receiver. I'd rather my receiver decode the audio as it probably does a better job of processing the stream.

True 7.1 streams use Dolby TrueHD and DTS-HD Master Audio. Dolby ProLogic IIz is 2 channel audio which is processed into 5.1 (not discrete channels). The difference between Pro Logic and IIz is that the rear surround channels use full frequency response
where original ProLogic does not (low end frequencies are kept in the front channels)

I did change to Bistream, then two choices are DTS surround sound and Dolby Digital.

My Xbox 360 and PS4 have sound option which offers Dolby Digital 5.1, whereas XBox One doesn't. Based on that, makes me think it still doesn't process in 5.1 for DD.

Yes, the bitstream DTS or Dolby Digital setting gives you true 5.1 channels. Check your receiver settings if you have the impression the channels are not discrete.

@puffergeek

So the PS4 adds notifications and other sounds to the DTS-HD or Dolby True HD stream? Youknow what this means, right? It doesn't pass through the audio stream either. Granted, it does seem to be able to output DTS-HD and Dolby True HD. But what's the benefit?
You're arguing that most receivers, like your Harman Kardon, do a much better job at decoding the audio then the console does. But don't you realize that even the PS4 touches the audio beforehand? Otherwise it wouldn't be able to mix in UI sounds.

You would connect an optical cable between the AV cable and the receiver, yes. Dolby Digital 5.1 is true surround sound. Five discrete channels plus subwoofer.