Dolby home theater audio dropping

So after following up with the Dolby Access support team, apparently games aren't supported on home theater, only on headphones:

"Unfortunately, Games encoded with Dolby Atmos audio are not compatible with Dolby Atmos for Home Theater, as they are specifically configured for Dolby Atmos for Headphones. If the content you are experiencing is not compatible with the app you are
using, then audio will cease, or will simply output as regular stereo output.

To clarify, Dolby Atmos for Home Theater is included at no charge with any Dolby Atmos supported hardware, such as a receiver or Xbox One X, and is used to activate Dolby Atmos features via HDMI connection for a Dolby Atmos certified AVR, soundbar,
or TV."

"Unfortunately, the version of Dolby Atmos included with your Xbox is Dolby Atmos for Home Theater, which is not compliant with any gaming content."

It kind of strikes me as hard to believe, or that this won't be addressed, but that's what they're saying for now. That said, it still isn't working for me for Netflix content either, so I'm going continue troubleshooting with them and see what's doable
and what's not. Fingers crossed.

The Xbox audio settings I have available are as follows:

HDMI audio:

* Stereo Uncompressed

* Dolby Digital

* Dolby Atmos for Home Theater

Headset Format:

* Stereo Uncompressed

* Windows Sonic for Headphones

* Dolby Atmos for Headphones

* DTS Headphone:X

Tried all of them. Nothing helped.

I am able to get Atmos on Netflix with my denon x4400 with the audio settings bitstream out and dolby digital for home theater selected. It makes you download the dolby app to change that setting.

Sounds like a problem with the HDMI cable. Is it direct to the TV or through a home theater system and then the TV? If it is home theater you may need to run a digital audio / firewire cable for the audio to function into the receiver.

If you're direct to a TV check you system audio output settings from the Xbox dashboard far right system option. With an HDMI cord you'll ideally want to use Dolby output and let the device it is connect to decide if it will use Dolby or downgrade to a 2
channel R/L stereo mode.

Hopefully this helps you out a bit.

Felix,

Here's what I saw following your instructions in Display and Sound, Video Output

1) Display - 1080P or 720P: chose 1080P

2) Advanced Video fidelity and overscan

a) Display - Auto detect (Recommended) or DVI or HDMI: chose HDMI

Display and sound, Audio Output

1) Speaker audio - chose HDMI audio, bitstream out

2) Bitstream format - chose Dolby Atmos for home theater (HDMI only)

Home screen - I noticed no sound while selecting the previous choices.

Restarted Xbox, still no sound.

Launched Dolby Access. Split screen shows you are set up for Dolby Atmos for home theater.

Played video clip. Still no sound. And yes the soundbar is on. No sound on regular TV either.

Went back to settings. Changed speaker audio to HDMI 5.1. Sound now works again.

Tried to re-setup Dolby Atmos per Xbox directions. Again no sound. What's wrong now?