Xbox 360 suddenly outputs pcm audio?

I found this on page 10 of the user manual.

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*4 * Depending on the connected equipment, audio will not output from the DiGiTAL AUDIO OUTPUT terminal in HDMI connection¸ In this case, set the audio formats of the connected equipment to PCM, 32/44¸1/48 kHz and 16 bits¸

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That may be an issue as there is no option to set the audio output on the 360 to PCM, maybe try the various options in the Audio settings on the xbox ?

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I would have thought that having both consoles connected via hdmi and just having the optical audio out from the tv to the soundbar would work though.

Set it to PCM audio in the xbox system audio output. This requires the least processing while offering higher quality than dolby digital

Hello maybe you could try Go into Settings > Sound and Screen > Audio Output Settings > Primary Output Port and select 'Digital Out (Optical)'. Make sure that only 'Linear PCM 44.1kHz and
'Linear PCM 48kHz' are checked. Xbox 360: Go into Settings > System > Console Settings > Audio and select 'Digital Stereo'.

Set your audio output in settings to PCM and see what happens

The issue is that when you select bitstreaming, the Xbox One will decode the HD Audio, mixes in its own audio, and then outputs it in either legacy Dolby Digital or DTS. Very old school.

If you select PCM output, the system decodes the HD Audio, mixes in its own audio, and then outputs it in PCM. I think most of us "audiophiles" would like the system to simply pass/offload the audio to our receivers so it can do the decoding. Something my
old PS3 has done for years now.

I would like this fixed.