Yes. So something isn’t right still. Did you update firmware?
Basically yes. I ran my old pre Atmos setup in pcm for a long time. Atmos has to be decoded in the BD player, not the AVR so that’s why it’s bitstream. It’s decoded, and sent out whet pcm is sent raw basically, and decoded in the AVR. Same sounds but unpacked by different components.
So, we still need to get your BD player to send bitstream. Something is off, so I would update the firmware. It’s up on top of the settings iirc.