Apple TV 4K 2021 shows only HD video from all apps instead of 4K or UHD
I bought the most recent Apple TV 4K 2021 but to my disappointment, when I plugged it in all my video content from apps like amazon prime and Netflix is showing only in HD. Note that I also have the 2017 4K apple TV and when I plug it to the same HDMI port, it displays in 4K as expected on my TV.
I verified that the 2017 apple TV with the same HDMI cable/port and video settings shows 4K but somehow the new 2021 apple TV 4K displays video only in HD.
Literally, nothing is changed in terms of TV hardware, software, cables, ios video settings, just the apple TV hardware from 2021 which has a bug where it can play video only in HD though it is advertised as 4K hardware. See the pictures attached below so you know exactly what I am talking about.
How can I enable 4K on the new 2021 Apple TV? If not, I guess I just have to return the device.