homekit automation issues

homekit automation to turn on and off lights when arriving or leaving home is not enabled.

"this automation will not run until you update the software on your home hub"

however all devices in the home have the latest software... Apple TV, HomePod, iPhone, and the smart plugs also have latest firmware.

This issue didn't exist in the past so what happened? How is this resolved? Is there something that needs to be enabled?

Also, I don't understand why home app says Apple TV isn't responding when it's on and I'm using it. Makes no sense.