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AirPlay is basically unusable with the new audio engine on my Apple TV 4K 1st gen. Audio drops out for a second every minute or so, then stops altogether after several minutes of playback. It does seem to finally fix some audio sync issues I’d previously had with AirPlay, though.
Interestingly, neither stability nor sync is a problem when I use old AirPlay 1 receivers, it’s only when I use AirPlay 2 speakers (a Sonos One stereo pair) that these issues crop up.
I’ve tried the latest iOS beta - perfectly stable and in sync on the same speakers.
Oct '23 update: nothing has changed since June as far as the new Plex audio engine is concerned: if you’re using modern Airplay 2 devices (Homepods, Sonos speakers, etc.), you still won’t be able to use the new engine. What has changed is that the workaround — switching to the old audio engine — only works on tvOS 17 if your Apple TV is connected via WiFi. That’s Apple’s new tvOS 17 bug that affects every app, not just Plex: Airplay 1 apps and receivers produce no sound at all if your Apple TV is connected via Ethernet. Since the old audio engine only supports Airplay 1, it doesn’t work over a wired connection in tvOS 17.0.
TvOS 17.1 update: Apple has fixed the issue, AirPlay 1 works over Ethernet again after 17.1 update. No changes in the new Plex audio engine, still not usable with AirPlay.