Mac Studio M2 Ultra not detecting Yamaha RXV383 on macOS Sequoia

I plugged in my Yamaha RX383 using the HDMI port on my Mac Studio Ultra to and my Mac Studio isn't detecting it in the sound settings. I'm forced to use a USB-C port for my Sound Blaster X4 for SPDIF out

Is it because the home theater receiver doesn't support ARC? or eARC?

Could someone recommend me a good home theater receiver that does 5.1, atmos, dolby, does good with both playing and producing music, can do World of Warcraft fine, can upsample stereo into 5.1, and works perfectly fine on the Mac Studio and macOS? And has a good FM tuner? Must be on Amazon.com. Would also like stuff like 24bit/192-384khz for the future, max of 500$ if possible. I prefer Pioneer because they made the best DVD players for playing Anime VCDs lol

[Re-Titled by Moderator]