Looks like a 2014 model. On that one, you’d go to Sound > Advanced Settings > Audio Format to make changes to the audio sent out of the optical port. But, on that model, anything coming in from an external device via an HDMI may very well be converted to PCM 2.0 when output over ARC or optical. It does state that dolby audio is converted for the TV speakers and may just be converting everything no matter the output.
Had a good look into the PS5 audio settings, Yikes! I’d set it to bitstream Dolby and then play something with a dolby multichannel track and look into the Audio Format setting in the TV to see if dolby is now available as an option. If not, change the HDMI output setting in the PS5 to AV Receiver and set it for 5.1. Then, play a Dolby track and check the output settings in the TV for available Dolby Digital option. If still unavailable, leave it at DTS Neo 2:5. Again, it is converting a PCM 2.0 to a DTS 5.1 track so you will get five discreet channels and an LFE signal to the bass module.
As an aside, shame on Sony for not putting two HDMI ports and a coaxial or optical port on their PS5. They figure everybody is working with new eARC capable TVs and AVRs. That simply is not the case for many and some are compromising video with older TVs and new AVRs and some are compromising audio with older AVRS and new TVs. Some are still working with older TVs AND AVRs and Sony doesn’t seem to give a s#%t.
Just for reference, the Sony UBP-X700, UBP-X800 and UBP-X800M2 offer two HDMI outputs and a coaxial digital output. The Sony UBP-X1100ES offers the same AND includes an optical output as well as analog outputs. The PS5? Just one HDMI output. F#%k you Sony! That is some bulls#%t!