A simple test:
Switch the GUI output of the ATV to 4K SDR BUT make sure to enable both "Match Content" features.
Then, if the YouTube app is actually producing an HDR signal for the ATV to send to the TV, you should see LG's little HDR logo in a corner.
If this doesn't happen then tough titties, I'm a premium YT subscriber and am disgusted by the technical quality of Google's YT apps, on iOS as well as tvOS and wish Apple wouldn't have caved in to Google by removing third-party YT watching apps from the App Store.
I on my end can confirm that on my unit of the ATV 4K 2021 the YT app isn't actually sending out an HDR signal and just wish lay persons would stop writing and talking about technical things with certainty they seemingly have no competence in. Mostly mean "reviewers" with that.