Depends on what you’re feeding the Vizio. You want as close to pass through as you possibly can. The less the TV set “messes” with the audio, the better. Essentially, it’s the setting of the devices that are feeding the TV set that should be “in control”.  There’s a benefit when using the HDMI-CEC of both the TV and the ARC, as it does a lot of that grunt work for you, assuming that all devices are in fact CEC compliant. 

@Braden_Dude0311 What specific model is your Vizio TV?