Hi @DonovanB.
Welcome to the Sonos community and thanks for reaching out to us. Allow me to share some information that might help.
Here is the guide about Supported home theater audio formats. Both PCM and LPCM as well as Dolby Digital audio format are supported by the Sonos Arc. The only difference is that LPCM audio format can only be generated by the Sonos Arc through HDMI eARC connection and not just your regular HDMI ARC port on the TV directly. Sonos does not recommend any audio extractor or switches as it may or may not work. Sonos always recommends that our home theater product be connected directly to the TV. Since you have mentioned about your TV having optical port, The Sonos Arc comes with an HDMI to optical converter which can be used to connect the Sonos Arc to your TV, however, The audio format that you would only be getting is PCM and Dolby Digital or 5.1 surrounds. Allow me to share with you the Sonos Arc functionalities, limitations, features, and guidelines.
I hope this helps.
Please let me know if you have any other questions or concerns. I’ll be more than happy to help.
Thanks,