I have recently upgraded to iOS18, tvOS 18.0, Sequoia v15.0 for reference.
Through my Great Room Apple TV 4K I am currently playing a Dolby Atmos stream using the Apple Music app on the Apple TV, and I choose the local Denon this Apple TV 4K is connected to as well as the Apple TV 4K in my home theater room for sound output.
This is playing the Atmos stream locally on the Great Room Denon, and using AirPlay 2 to stream to the Home Theater Apple TV 4K, connected to another Denon. Both Denon receivers are showing Dolby Atmos and are in perfect synch. Playing a Dolby Atmos stream in 2 rooms simultaneously sounds wonderful!
These are the only 2 Apple TV 4Ks connected to an Atmos-capable receivers. If I add any other Airplay 2 device in my house, the Denons both then revert to a DD Surround signal, so the signal is downgraded when an Airplay 2 device is added that can't support Dolby Atmos.
I was pleasantly surprised to find this working, as I just upgraded all my Apple devices 2 days ago. I will also be testing the Apple Music app on one of my Macs and will stream to the same 2 ATVs to see if that works also. I'll report back with the results.