Yes, that feature is well hidden in plain sight by trying to "dumb it down" for the average user. Sometimes, a thing should just be called what it is. ;)
Up until a couple of weeks ago, when I turned on the Apple TV device, it also turned on the TV (which has not had an update recently, unlike the Apple TV). Inversely, if I turned the Apple TV off, it would send a signal to the TV and that turned off too. This feature just stopped working.
I did a hard reboot on both the television and the Apple TV and toggled the switch in each as well with no joy.
I'd rather not do the standard "tech support script" first step of resetting the TvOS and lose all passwords and customizations with the possibility that the issue was indeed in the update and would still be there. That is the absolute height of frustration, as I'm sure you will agree. I believe that the recent update broke it and will wait to see if the next one fixes it before nuking the device. The first suggestion from Apple Support and, recently, MS support as well when I sampled Windows 11 was just that. Heck, I could do "tech support" for either if that is the go-to fix for everything. At least Windows 10 was backed up. There is no such easy option for any Apple device other than their PCs.
Regards and thanks for replying.