Yes, correct, directly connected to the receiver. Receiver output is a projector.
it is displaying PCM anytime it’s the Atmos content, that I’m trying to play. Only does PCM when it’s Atmos.
I spoke with Yamaha support today, they’ve gone through the settings with me and have confirmed that the issue is with source, as thanks the signal being sent from the source. Further, I tried latest firetv 4k with Atmos support today, in place of AppleTV and it is working fine, Atmos context plays fine, sound and all. so everything is pointing to the problem is with AppleTV.