Thank you for your kind response. I did a cold boot of the entire LAN as per your suggestion, including un-plugging all relevant devices; unfortunately the issue remains.
What I have additionally noticed is that in Apple TV settings/apps/music app/Dolby Atmos, that if I toggle the Dolby atmos setting between Automatic and off (there is no 'always on' setting as before with tvOS 14.7) - the sound will sometimes give me full Dolby Atmos for part of the duration of a particular track.
However when a new track starts, I can hear atmos surround for perhaps a second, and then the sound collapses mainly to the left front channel, and at a lower loudness level, to the right. No sound at all from centre or rears - so two channel only - but at a low volume on both fronts.
I wonder if with the tvOS 15, something might have changed with it that does not 'fit' with my hardware setup. My TV is HDMI 1.4 - mostly likely B, as it dates from 2012. It does have ARC as part of the HDMI 1.4b specs, but not eARC - whether there is something different there in tvOS 15 I am unsure.
My limited understanding of this is that Apples implementation of Dolby Atmos uses Dolby Digital plus 5.1 lossy compression, with Dolby MAT 2.0; as such there is no passthrough and the Apple TV converts to multi channel PCM which it then sends to the TV. Certainly the TV which has an integral surround sound processor, reports that the incoming stream is PCM.
I'd also mention that my Apple TV 4K 64gb is version one - purchased not quite 3 years ago - whether an 'upgrade' to the latest version which makes mention of supporting eARC would make any difference I am unsure.
I should also mention that I am having no issues with 2 channel sources, or multi channel surround sound sources through the Apple TV 4K, which includes movies purchased from the Apple TV store - all of which play flawlessly in multi-channel surround sound, streamed online from Apples servers.
Additionally, nothing has changed re my hardware setup - the issue is only occurring in the Apple Music app, and with Dolby Atmos sources only.
If any one is able to shed light on the issue It would be greatly appreciated - or perhaps if I should raise the issue with Apple?
Many thanks again for your thoughts and kind response - much appreciated
Jonboi. :-)