When I stand in front of the ATV in the media closet, it will control the volume.
So it does work under some specific conditions. That’s an important clue.
- If you use your TV’s internal speakers for audio, then the Apple TV remote should be sending an IR signal directly to the TV.
- If you use a soundbar, then the Apple TV remote should be sending an IR signal directly to that.
- If you use an AV receiver, then the Apple TV remote should be sending an IR signal directly to that, or optionally use HDMI-CEC via the Apple TV box, if the receiver supports such functionality.
- If you use AirPlay speakers or Bluetooth speakers, then the Apple TV remote should be sending a Bluetooth signal to the Apple TV box, and the Apple TV box should then regulate volume in the signal it sends to those independent speakers.
Also verify your Volume Control settings, to match its use. “Auto” may not work for everyone. There are more options there. Apple TV: Settings﹥Remotes and Devices﹥Volume Control﹥…
Could the receptor be bad?
The IR receptors in devices may get a signal more easily when the IR signal is stronger, so line of sight and being closer and the angle of beam may matter, as well as remote battery charge level (i.e. nearly depleted or not). The receptor doesn’t have moving parts or delicate circuitry, so it isn’t expected to be the first thing to fail. Although a power surge can cause issues, it would be more likely to take out a whole device rather than a single component. You may contact the manufacturer for advise. Contact Apple for support and service - Apple Support