Try this:

Disconnect everything from the TV and unplug the TV, Arc, and Apple TV from power for a couple of minutes. Plug everything back in but keep everything disconnected. Make sure Simplink is enabled in the TV settings. Then run TV Setup in the Sonos app and follow the instructions. When the app instructs you, connect the Arc to the TV using the Sonos-supplied HDMI cable. After the Arc has been successfully connected, connect the Apple TV to the TV.

Also be sure to set the TV to these settings:

HDMI Input Audio Format: Bitstream

Digital Sound Output: Pass Through

eARC Support: On

Thanks for the quick reply… Ive done those things multiple times already..

In that specific order?

Do you have anything else connected to the TV? Have you tried using a different HDMI cable with the Apple TV or connecting it to a different HDMI port?

The issue is the same for Apple TV and playing directly from Apps on the TV

What apps are you using to play Dolby Atmos audio? Does it affect one app or all apps? What audio format does the Atmos audio play as?

Hi @Scbryan2160 

Welcome to the Sonos Community!

I recommend you get in touch with our technical support team, who have tools at their disposal that will allow them to give you advice specific to your Sonos system and what it reports.