The Apple TV box outputs Dolby Atmos in Dolby MAT format, which requires eARC between the TV and the soundbar. Regular ARC doesn’t have the needed bandwidth for that format. Could it be that the TV doesn’t have eARC, or isn’t configured for eARC?
Is your setup done like
Apple TV →[HDMI]→ TV →[HDMI (e)ARC]→ soundbar
or like
Apple TV →[HDMI]→ soundbar ⇄[HDMI (e)ARC]⇄ TV
Either setup is functional and fine, unless one puts limitations on what works, e.g. from port specifications.
If I put in a DVD, it displays Dolby Atmos.
Blu-ray discs may have Dolby Atmos, but Dolby Atmos is not part of the DVD-Video specification. DVD supports Dolby Digital, MPEG-1 audio, PCM audio, or DTS.