Apple TV 4k - A2169 - Unwatchable Content

It almost feels unbearable to write this, knowing that an Apple rep or AI bot will chime in saying what they have said in every other support thread. I know this is all over reddit and other places online as well. I'm writing this as a last ditch effort to keep my "top of line streaming device" in use. Here it goes:

A couple of years back I purchased an additional Apple TV. Having used an older model for years, I went with the newest at the time, Apple TV 4K. There's a power port, an hdmi 2.0 output, and an ethernet input for hardwired connection. All components are working as designed and there is no picture issues or quality issues about 75% of the time when watching live streaming TV through fubo. However, trying to watch (John Wick or Hellboy) an action movie is unbearable. If there are any bright flashes, light glares, or cut to white shots/ frames, the entire TV will either slowly dim and then return. OR the TV will cut straight to black and make it's way back to normal whenever said scene, action, fight, instant replay (fubo), etc. I have done every single possible combination of multiple settings.

So, before I go down that road of miserable memories, here is the set-up:

Sony 770H Receiver - > HDMI input channel set to "Enhanced" (the problem began using the "Standard" setting and did not resolve with the change over to "Enhanced") - > 8k 48gig HDMi cable - > Apple TV 4K (connected via ethernet to the home network/internet).

TV: LG 75UN7070 - > HDMI ARC out - > 8k 48 gig HDMI cable - > to the Sony 770H Receiver

I have reset the settings on the TV, factory reset the Apple TV 4k, adjust frame rates, chroma settings, HDR, SDR, match content, and adjusted every conceivable setting on my TV that I can access has been turned off, on, and every which way. Cables are new, receiver is more than capable to deliver the video, internet connection is a brand new cat 8 ether net cable connected to a fiber ISP plan.

When I use the built in Apple TV app on the LG TV and play the same movie scenes, the content plays just as it should. However, when streamed from the Apple device to the LG all the fading/ drop to black begins to happen. I am at a total loss on 2 things: #1 and #1 BY A MILE is why is it so difficult to resolve this issue? How can people plug a $25 slow as molasses streaming stick into a 4K tv and have zero problems? It makes ZERO sense. And, #2; does anyone know how to fix this or are you dealing with the same issues?

It seems to me, that this is 100% a hardware/compatibility issue Apple is having with their 4K models. I've even set the device to output 1080 & 720 with the same exact results. The single greatest founding principle of Apple devices USED TO BE that they were over-engineered devices, worked straight out of the box, and were incredibly intuitive. This no longer seems to be the guiding principle.