I do receive the message on top of the Settings menu on my AppleTV HD. I have tvOS 17.5.1 installed, when I do a software update it says that this is the latest version. In the AirPlay and HomeKit menu, I cannot select a room as the menu item is greyed out and shows the spinning cursor always. Tried reset by pulling the power cable.
My AppleTV 4k does not have this problem.
Apple TV HD
Is the Apple TV HD box registered with the Apple ID account for iCloud services, belonging to the HomeKit ‘home’ organizer? Apple TV boxes registered with a different main account can’t be part of the same HomeKit ‘home’.
Try using the Home app on iPhone or iPad to assign a named room in the home to this device.
When registered with the right account, it should be automatic.
Set up your HomePod, HomePod mini, Apple TV, or iPad as a home hub - Apple Support
Update tvOS to join your Home
