Hi David,
Essentially, Pcm and bitstream are the same. PCM means the source is decoding the soundtrack and just telling the receiver to amplify it. Bitstream sends the soundtrack to the receiver which does the decoding. You were basically listening to the same thing, just a different component doing the decoding. I used to use PCM and have my bluray player decode dolby true hd and dts:ma as my older sony receiver could not decode those. Now I use bitstream and let my new Yamaha receiver decode it.