For a not expert person like me, the easy and practical question is: with all the new Apple Store Movies standard and ATV4,
-by setting Audio Surround to Automatic, my HT is showing Dolby Pro Logic II (on top of other modes like Theatre Dimension, T-D, etc);
-by setting Audio Surround to Solby Surround, my HT is Showing Dolby Digital.
In both cases, the quality and the experience that I am having is quite similar.
What would you do in this situation?
As previously indicated, this is primarily a matter of personal preference. In my case, I know how my audio tracks were encoded—with both AAC and AC3 audio tracks—and I normally prefer to play the AC3 track so that my receiver correctly identifies/differentiates/plays 1.0, 2.0, and 5.1 audio content automatically. In your case, it will probably be impossible to tell how your movie purchases were encoded except by examining source files on your computer or by listening to individual speaker playback. My best advice would be for you to play some "test" files in both the "Auto" and "Dolby Surround" modes in order to examine various output "idiosyncrasies" depending on the source track compression format, TV4 mode, and encode channelization. If you don't have a selection of such files available, here are a few you can download and test:
http://downloads.walker4.me/Temporary_files/Test-1.m4v
This video clip has both AAC mono and AC3 mono audio tracks. It is coded to open automatically with the AC3 track pre-selected. In the TV4 "Auto" mode both tracks should normally play as L/R 2-channel audio with DD PL II disabled or center channel mono with DD PL II enabled. In both cases your AVR should identify the audio as Stereo PCM under the tvOS v9.0.1 update. In the "Dolby Surround" mode the AAC track should also play as L/R 2-channel audio and be unable to decode the mono center channel since your AVR should identify the bitstream as being DD5.1 multichannel connection. However, the AC3 track should play back automatically as the original mono center channel track and correctly identify the DD1.0 bitstream as such.
http://downloads.walker4.me/Temporary_files/Test-2.m4v
This video clip contains AAC 2.0 and AC3 2.0 audio tracks. Both are encoded for DD PL II playback. Once again, in the "Auto" mode both tracks with play as L/R Stereo with DD PL II enhancement disabled or with added center and surround channels with DD PL II enabled. Again, your AVR should identify the input audio as Stereo PCM in this mode. In the "Dolby Surround" mode, however, the AAC track will again be identified as being received as a DD5.1 bitstream with only the L and R channels active and DD PL II decoding disabled. On the other hand, the AC3 track should be identified by your AVR as Dolby 2.0 audio which can be played with or without DD PL II enhancements.
http://downloads.walker4.me/Temporary_files/Test-3.m4v
This last video clip is encoded with an AAC 2.0 DD PL II track and an AC3 5.1 audio track. In the "Auto" mode, the AAC track with be identified as Stereo PCM and, like the file above, can be played back in stereo with or without DD PL II processing. However, the DD5.1 AC3 track will be identified as a DD+7.1 audio track which only plays with 6 active channels. In the "Dolby Surround" mode, the AAC track again plays as stereo with or without DD PL II enhancement but is identified as a DD5.1 bitstream. The AC3 track is also identified as a DD5.1 bitstream but, in this case, all 6 identified channels are active.
As you can see, there is give and take no matter which way you go. So you may as well pick the workflow that suits you best personally—as long as you the associated weaknesses.