Diagnosing HDMI connections and how they negotiate capabilities can sometimes be maddening because it's rarely clear what's really happening.
I suspect that TV doesn't support eARC (HDMI 2.1), although probably can do
Dolby Digital Plus/Atmos over ARC (HDMI 2.0). Can you disable DD+/Atmos on the TV or Soundbar and see if it makes a difference? That would put you back to isolating the ARC connection as just working when the bitstream is lower bandwidth.
I would look between the TV and soundbar, as I don't believe the Apple TV knows where the sound is going, it just works with the HDMI sinc it is connected to. Assuming the Apple TV is plugged into a non-ARC HDMI port on the TV and the soundbar is on the ARC HDMI port on the TV, then the Apple TV is getting EDID info from the TV to know what sound format the TV reports as supported. If the TV is configured to send audio back to the soundbar via ARC, it's probably going to tell the Apple TV to send compressed audio bitstreamed (either Stereo or DD 5.1) rather than uncompressed multi-channel LPCM (even if "Change Format" is "Off"). But, if ARC is disabled, the TV may tell the Apple TV to send multi-channel LPCM? If something there is getting confused, I would think there's no harm to setting "Change Format" to "On" on the Apple TV to force it to bitstream audio just in case it's sending multi-channel LPCM which can't be passed back via ARC.
I tried “Change Format” already. Just to be clear: the sound just cuts about 15-20 seconds after turning everything on. A restart of the sound bar fixes it and all sound is output as it’s supposed to. I can check the current sound format on the bar with a press of a button. The sound bar supports these formats:
Dolby® Digital, Dolby Digital Plus™, Dolby® TrueHD, Dolby Atmos®, Dolby® Dual Mono, DTS®, DTS-HD High Resolution Audio™, DTS-HD Master Audio™, DTS-ES, DTS 96/24,DTS:X™, LPCM (2-Kanal/5.1-Kanal/7.1-Kanal), DSD (2-Kanal/5.1-Kanal)
The TV supports ARC HDMI 2.0 and These codecs:
AC4, AC3(Dolby Digital), EAC3, HE-AAC, AAC, MP2, MP3, PCM, DTS, DTS-HD, DTS Express, WMA, apt-X
However I found out that Sony added support for eARC (2.1)in that 2.314 firmware update a couple weeks ago. Maybe it has something to do with it. Since then it supports the following formats:
Dolby Atmos®-Dolby TrueHD® & DTS:X® or Multi channel LPCM content that can’t be transmitted over ARC.
Does the sound disappear when you use the TV speakers fo audio without an ARC connection?
No it doesn’t. Also, when I turn the sound bar off it automatically switches to the TV speakers. Switches back to the sound bar when I turn that on.