What are you using for playback from your PC to the AVR? Not hardware, but what SOFTWARE are you using?
Issues related to PCs connected to home AV systems almost always are issues that exist within the PC. Whether it's the video card, bad drivers, or just weak software which is in use.
Specify, exactly, which software you are using on your PC.
No question, you should be using HDMI from the PC directly to the Denon, then on to the TV. Period.
You also suggest that it only outputs 'PCM' audio, like that's something bad. PCM audio output just means that the PC is decoding the audio from surround sound internally, to deliver to the receiver. It doesn't mean the audio isn't full resolution or worse. It just moves the conversion from inside the receiver to inside the PC.
An issue arises when the PC converts it from surround sound down to stereo, or something like that. That's not good.
I had a similar issue recently where my PS4 was internally decoding audio from surround sound to PCM. I had the audio output set to PCM audio. My receiver handled it just find and played back in surround sound. But, I had a secondary DSP which couldn't downmix the PCM audio to stereo for playback on headphones and in stereo only rooms. I had to go into the PS4 and change my audio output settings from PCM to Bistream. Bitstream audio output allowed for the original surround sound mix to be sent to my AV receiver properly, and it allowed my secondary DSP to convert from surround sound down to stereo accurately.
The issue? In my source.
Your issue? 99% of the time will be in your source.
Don't complicate things by using DisplayPort, or sending audio to the TV first. Keep it simple then look for the issue that is going on with your PC and most likely with the software you are using with your PC. Make sure it is set to Bitstream for audio. Default may be PCM, but if the software handles DTS at full audio resolution, then you are getting full DTS audio at your receiver.