Different brand receivers will have different limitations concerning height speaker assignments based on the configuration of the ear level speakers. A Denon AVR-X4500H is going to be more limited in many different ways compared to a new AVR-X4800H.
Concerning 3.1.2, it can be done in any new receiver featuring at least seven amps for an X.1.2 configuration. I think I read in the original post that ALL speakers were going to be on the wall. I'll proceed as if that is the case.
Using a Denon receiver for 3.1.2, specifically the S970H, one needs to configure the amps for 7.1. Then, the actual Speakers to be used can be selected in the settings. For 3.1.2, the Front and Center speakers would be set to YES. The Surround and Surround Back speakers will be set to NO. Then, because we are working with wall mounted height speakers, Front Height speakers would be selected for the Atmos speakers, NOT Top Front(Ceiling Mounted), Top Middle(Ceiling Mounted) or Front Dolby(Bouncy House/Upfiring Speaker/Module.) The Surround Dolby option will be unavailable here when Surround speakers are not configured. Denon does not allow for Top Rear speakers in their 7.1 receivers.
I don't think I'd bother with Front Height speakers and would simply use Virtual Height speakers and do 3.1 here. Results will vary of course but when set to 3.1 with Speaker Virtualizer ON for Dolby Atmos tracks, my Onkyo spits out something better than just the DD+ signal sans Atmos metadata when playing Dolby Atmos music bitstreams with just 3.1. If the Speaker Virtualizer is OFF, Dolby Atmos Height Virtualization will not work and the Atmos metadata will be lost. The signal will now display as DD+ rather than Atmos/DD+.
All of this is based on the assumption that Surround speakers and Ceiling speakers are off the table in certain rooms here. Setting up the speakers will be a bit more complex using some receivers compared to other receivers. My seven channel Onkyo makes it easy. You can start at 2.1 and go up to 7.1. Then, after 7.1, you start at the beginning again but with Height speakers added into the mix. So, then it is 2.1.2 and so on up to 5.1.2. Onkyo actually does allow the use of Top Rear speakers with their seven channel receivers when configured for 3.1.2.
Here are some pics of a 3.1.2 configuration in action using my Onkyo for reference. I actually run a 5.1 configuration using two subs and Virtual Height Speakers. The Speaker Virtualizer must be ON to make use of Dolby Atmos Height Virtualization and DTS Virtual:X. Denons can also make use of both of them while others just Dolby. Apologies for pic quality. I’m not a fan of taking pics of TV screens.
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