Apple TV 4K auto sound setting not playing surround dd+ content

My setup: I have the Apple TV 4K that I just bought, has the latest updates. I connect that to my Sony Bravia a80j which is then connected to my jbl 9.1 using eArc which supports Dolby atmos.

Problem: If I set the Apple TV audio format to auto and enable Dolby atmos, all stereo and Dolby atmos audio plays perfectly. But when I pick a regular 5.1 audio format video from Netflix, Amazon prime or hbo max it sends the audio as pcm (which is fine) but then the speaker outputs are all messed up. Center channel output comes through left rear and left rear is missing etc.

if I force the audio format on Apple TV to output 5.1 then everything works fine except I no longer get Dolby Atmos which sucks.

I have other devices and the same videos play perfectly good surround sound using Dolby digital dd+ And my setup. Issue seems to be with Apple TV 4k

am I missing something here?