HomePod Network Mismatch (but not really)

I have my HomePods connected to my WiFi network and My iPhone is connected to my Wifi Network (same network). My HomePods are connected to my Apple TV and are paired for the audio output.

When I open the Home app I get the following message [ ! HomePod Network Mismatch LR HomePod and this iPhone are not on the same Wifi Network ].

As I have said, they are both connected to the same WiFi network (verified on iPhone and in Home app). The issue (I think) is that the HomePods are not really connected to my WiFi network (my router does not show them connected to the WiFi network at all), but since they are being used as my Apple TV audio output (in stereo pair) they are using the ethernet connection that my Apple TV is connected with, so they really are connected to my ethernet network so they are having issues connection to my iPhone on the WiFi network. I do have MDNS enabled. The setup as been working for a while until 18.X updates. so I think they have changed things around and this is a bug they have not addressed yet (my speculation).

I suspect that if I disconnect my Apple TV from the ethernet connection and use WiFi (same WiFi as my iPhone) things will work again. I prefer my Apple TV uses ethernet over WiFi since I have ~30+ devices on my WiFi already and the Apple TVs use the most bandwidth (by far)

Any suggestions would be helpful.

TBM.