Right. When HDMI-CEC is ON, the TV is the boss and everything is communicated and approved by it. Everything has to be run by the HDCP officer. Check if HDMI control is still functional using any other port. Some TVs only allow HDMI-CEC remote control features through the eARC port.
Also, depending on the connected devices and the generation of the Apple TV 4K , it may report the connected device as TV, Receiver, or as you experienced, Receiver HDMI-eARC.