Not getting Dolby or DTS over HDMI to Receiver

Absolutey stick with 5.1/7.1 uncompressed over HDMI if you can. It is not a simple firmware fix because, for Snap etc. to work as designed, the One must decode the Dolby/DTS audio to mix in the other sound sources. If your receiver has HDMI and supports
uncompressed 5.1/7.1, why would you want it to reencode that uncompressed mix back to Dolby/DTS only to have the receiver to decode it again? This extra step certainly could cause sync issues because each encoding or decoding takes time and processing power.

It seems to me that many folks here believe that Dolby and DTS are synonymous with surround/multichannel sound and that, if they don't see those lights or words on their receiver, they are not getting multichannel sound. This is simply not (necessarily)
the case. Dolby and DTS in their various forms are just codecs for compressing multichannel audio, similar to how MP3/FLAC/etc. are codecs for compressing stereo audio from CDs etc.

Dolby Digital & Dolby DTS 5.1 & 7.1 hdmi & optical support are going to be added in the March 9th update. I'm previewing the new update right now on my XB1 and Im now running Dolby Digital & DTS through my receiver and Turtle Beaches

Your receiver might not support bitstreaming at all over HDMI and only optical audio.

PCM is what you really want to use with HDMI as the Xbox one supports 5.1 and 7.1 uncompressed PCM which is superior to Dolby Digital.

Dolby Digital support was added for older receivers, media with its highest sound configuration being compressed media (DVD DTS or DD), and surround sound headsets. If you have an HDMI receiver, even the first HDMI specification offers support for surround
sound PCM. Bitstreaming formats like DD and DTS came in later revisions so it might be that your receiver was behind on those revisions, but should at least play 5.1 LPCM.

One question, why have hdmi from receiver to tv AND an optical to tv as well? Hdmi should carry the audio, so not sure why you would use optical to tv as well.

If your watching blu ray movies I would stick to uncompressed. Blu ray movies almost always have a lossless track (Dolby TrueHD or DTS-HD master audio) which is a clear step up from normal Dolby digital or DTS. Uncompressed should pass the lossless tracks,
where Dolby digital or DTS will not. Don't worry about the Dolby or DTS light on your receiver. Only reason that they may sounds better is IF you are usb a surround processing mode that only works on a bitstream signal.

Thanks for the feedback. My receiver is a Yamaha RX-V373 and it does indeed support Dolby TrueHD;

HD Audio format decoding: Dolby TrueHD and DTS-HD Master Audio; Dolby Digital Plus and DTS-HD High Resolution Audio

To Dayton; so it does appear multi channel on the receiver display but the format is PCM. Seems strange. Again, with the HDMI passthru, and the TV function it is still PCM. But if I hook my Sat receiver in directly the A/V receiver displays Dolby Digital.