Can Disney Plus and Paramount Plus output in 5.1 Dolby Surround Sound using Optical S/PDIF?

Hi MasquedWarrior! My name is Ricardo an independent advisor ready to help you with this situation!

The Xbox supports that output configuration so there must be no trouble with the output trough S/PDIF cable as the output is managed by the console

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.

I don't believe that surround sound is currently being supported through the XBX1 HDMI output (supposed to be updated at some point). Dolby Digital is not supported at the moment, but DTS 5.1 surround should be available from the optical output on the XBX1
if you can use it. Good luck

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Oh yes, that would work. But I also have a surround sound receiver, and lol I have filled it with hdmi cables, so the xbox is stuck with component

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I'm sure your receiver has an Optical S/PDIF port on it and you can use both the HDMI and Optical Audio cable at the same time. But its your choice if you want to use the lower quality cables. There's no difference between the HDMI and Optical Audio cable
in terms of sound quality. Both can easily do Dolby Digital 5.1 and that's the best the Xbox 360 can output.

No official word. There was a post on NeoGaf from someone from MS basically saying Dolby 5.1 optical will be added and wasn't available at launch because of software scheduling. Shame this plus a chat adapter still aren't available. I hope around the time
Turtle Beach launches their Xbox One specific headsets in February they will add this back in. Their sound processor was one thing MS was especially proud about for the One, but for anyone with a surround sound headset it's completely worthless right now.

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Also just for accuracy Dolby Digital can't output 7.1 over optical only 5.1 because of bandwidth. Astro A50 base takes the 5.1 up samples it to Dolby 7.1 and then using Dolby Headphone takes the 7.1 and down mixes it to stereo that headset actually uses.
All according to the Dolby specs though so all the nice positional simulation is left in there. I own a pair of A50s and I have to say the for use with the Xbox One stereo output right now I turn off the Dolby mixing off on mine. Dolby has never sounded all
that good up mixing stereo sources to surround sound.