I don’t own a PS5 but I’d suggest that you look for a setting in the PS5 sound output that reads as “Bitstream”. Also make sure in the sound menu of the LG that audio is set to “pass-through”. Hopefully someone with a PS5 will comment on this as well.

Thanks man. I’ve managed to get it to PCM 7.1 now which is a massive improvement. Still can’t figure out why it won’t give me Dolby Atmos 7.1

Make sure your TV settings are set to this:

Digital Sound Out: Pass-through

HDMI Input Audio Format: Bitstream

eARC: On

And the PS5 settings are set to this:

Audio Format (Priority): Bitstream (Dolby)

Also, press the Options button on the PS5 joystick while playing the disc, then click the ‘three dots’ icon and choose the Bitstream option under Audio Format.

Will give this a shot also 

Thanks man. That worked perfectly