not working for you.
It is working for others, so that means it's probably not an app or OS problem. And troubleshooting on your setup might help.
what TV do you have?
go into the sound settings on the television, you might have to go into advanced
look for a setting about audio format or digital sound, play around with those.
there might be separate settings for each input and the output
you might see words like LPCM, bitstream, or pass through.
The aTV uses LPCM, so start there. auto or pass though are also good choices.
I can't say this for sure, but it seems Netflix only checks atmos compatibility when it starts to play a file. So the badge won't be there at first, but it will play in atmos, And then when you stop, you'll have the atmos badges.
Same goes in reverse, if you start to play something, but your system or a setting is wonky, and it thinks you don't have atmos, it will remove the badges.
you could also try uninstalling and re-installing the app if nothing else helps