Apple TV app giving "This monitor does not support HDR playback" error

I'm encountering a problem with two different Macbook airs - an M1 and M2 connected to an LED TV or two different projectors using the display setup as an extended desktop. When I move the video window to the external monitor this error pops up "This monitor does not support HDR playback"

I know this issue has been brought up in the past but the threads were closed out. It seems this happened after updating to Sonoma.

In addition it's only the downloaded movies that are in HLS format. Streaming or videos in the MP4 format work fine on the second display. Apple store visit confirmed that it's not the USB C adapter and an OS erase and reinstall did not solve the problem.

Is the recommendation to use a different movie service like the Amazon Prime mac app? Does anyone know if Apple is working to make the Apple TV app compatible with more (most) displays out there today?

Has anyone confirmed this error goes away with a certified HDR projector / display?