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I was actually able to cast Dolby Atmos to Sonos via the Hi-Fi Cast app. But the weird thing is, the Dolby Atmos indicator doesn't show up in the "Sources" section of the Sonos app.
So my question is, when I cast Dolby Atmos to Sonos via the Hi-Fi Cast app, does it cast the Dolby Atmos audio downmixed to stereo?

I suspect it does. The Sonos reports what it is receiving in the controller, I’ve never heard (yet) of any system that can send an Atmos signal to Sonos. 

No. It is pass-through without downmixing. See this : 

 

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