The TV supports passthrough audio from TV based apps, just not for TrueHD. TrueHD audio will be transcoded to a supported format. Furthermore, when transcoding audio, if subtitles are enabled, the video will be transcoded to burn them into the video stream.
Details
Audio Passthrough
There are two types of Atmos for home theaters: Dolby Digital Plus Atmos, used by streaming services; and TrueHD Atmos, used on Blu-ray discs.
The TV supports passthrough for Dolby Digital Plus, including Atmos, from both TV based apps and from devices attached to HDMI inputs.
The TV supports passthrough of TrueHD audio, including Atmos, from devices attached to a HDMI input, such as the Nvidia Sheild.
The TV does not support passthrough for TrueHD audio, including Atmos, from a TV based app. This is a LG design limitation. There is no workaround.
When you play a video with TrueHD Atmos using the Plex LG app, Plex Media Server will transcode the audio to a supported format. The Atmos information is lost in the process. It is not possible to transcode TrueHD Atmos to Dolby Digital Plus Atmos.
FYI, no TV supports TrueHD passthrough from a TV based app, so switching to another brand will not resolve the issue.
Audio Transcoding & Subtitles
If the media is direct streaming, such as when audio is transcoding, enabling any type of subtitle results in video transcoding and subtitle burning.
This is due to a limitation in the streaming protocol used between the Plex server and the TV. Plex has to burn the subtitles into the video stream to keep the video, audio, and subtitles in sync with each other.
There is no workaround.