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I hook up the HDMI cable that came with my Sonos Arc from the soundbar to the eARC HDMI on the TV. 
my sound settings are set on the TV:

sound output: HDMI eARC 

HDMI eARC Mode: Auto

Digital Output Audio format: Auto

Dolby Atmos  Option: selected

and when I try to play Netflix content with the Dolby Atmos symbol (higher tier Netflix subscription) all I see is Dolby Multichannel PCM 5.1 on my Sonos app

What am I missing? What else I can do? Thanks for all the help. 

Is there a “Pass Through” option for the Digital Output Audio Format setting? If so, use this setting instead of Auto.

Thanks for answering. Yes, there is a pass through option but for wathever the reason I can’t selected. I can only choose PCM or Auto. The pass through option is there but not selectable. 

Try this:

Log in to your Netflix account on a web browser and go to your Profile & Parental Control settings. Under your profile, go to Playback Settings and set the Data Usage Per Screen setting to HIGH.

Thank you Guitar Superstar!! It fix the problem. 
I have also come to realize that when Netflix writes Atmos right next to the title of a series, not all seasons are going to be in Atmos, probably just the latest season and that is it. That also create some confusion. 

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