HELP: Apple TV won't stay on TV speakers as default audio output – insists on using AirPlay

[SW3029]

I brought my Apple TV to a friend's house and it plays audio through the TV for some time, but then all playback stops and Apple TV gives me a message saying "Unable to connect to HomePod. You can switch to TV speakers in Settings."

This is because my ATV usually plays through my HomePod at my house. But I only brought my ATV and not my HomePod to my friend's house, so I want the audio to play through his TV speakers.

But when I click the "Change Default Audio Output" button and select "TV Speakers" from the list, a checkmark never appears by it – I just keep seeing the spinning pinwheel. Then I go back to the YouTube app and the audio comes out of the TV just fine...for a few minutes. After those minutes, the Apple TV shows the same "Unable to connect to HomePod. You can switch to TV speakers in Settings." error again.

Any idea why my Apple TV keeps trying to connect to my HomePod (which is NOT at my friend's house) and won't stay on the option to use the TV speakers as the audio output?

 

[JustiNYCity]

I gave my old ATV 4K to my parents and am having the same issue. Updated to 16.3, signed out of my account but kept my mom signed in (we are on an Apple one family plan). Any luck figuring this out? Their internet is soooo slow so I dread resetting to factory.