Did you press the “DIRECT” or “PURE DIRECT” button?
Did the LCD Screen say “DIRECT” or “PURE DIRECT”?
On the AV10 and AV7706, there is a “PURE DIRECT” button behind the front panel door on top left.
There is also a button on the remote control.
This is used ONLY to test 2CH playback (NOT ATMOS) with absolutely no processing.
With ATMOS, there will be Sound PROCESSING in both AV10 and AV7706. So I can 100% understand if the AV10 sounds better in ATMOS than the AV7706.
Actually I seldom use direct mode. The only time I use it consistently is when and engineer wants to check some vile rock mix.
In classical recording you don't add artificial echo, or any adulteration like that. I do not play music I find totally unpleasant and frankly badly engineered no matter what the credentials of the engineer that produced the vile racket.
So in what I listen to, you really don't want all the ambience coming from the front speakers. I find that the Dolby upmixer in fact works very well, especially these days when recording engineers recording classical concerts are reducing their mic counts continuously. Some, are at last not sticking mics in front of soloists which is particularly bad for piano concertos. I think they are realizing that a lot of listeners are using upmixers now, and they don't work properly if you put mics all over the place. That was a mistake I never made, in my radio recording broadcast days. The conductor, or chamber musicians should be in charge and control the balance and not a recording engineer. So for well recorded music I listen with the Dolby upmixer that works very well, and gets the ambient field largely coming from the correct directions. Lastly all my front side and back speakers are very capable speakers. Even the smaller, but not small surrounds are capable speakers and high spl when required. The four bass/mids have 2.5" VCs. I used to use those as my portable monitors and they are very capable.
I should mention that my variable BSC setting needed to be kept the same as before and was spot on. I should mention that variable baffle step compensation is a game changer as far as I'm concerned. It solves a lot of problems that people regard as room problems. I have found, and others, that BSC is in fact very speaker position in the room and room dependent. I regard variable BSC as a highly significant advance towards accurate reproduction in the room.
The Atmos from the AV 10 is a totally different league from anything I have encountered before on a good Atmos stream or disc.