I have an LG Oled55C8 with webos 4.0 which is connected to and Av receiver Denon X-4500H by Hdmi Arc.
I start playing around with Plex for the first time and it did work really well.
I have created servers on both my laptops and everything played like a charp with on the Plex app of the TV.
My only issue is that audio sources such as TrueHD 7.1, TrueHD 7.1 Dolby Atmos, etc are down converted to DD+.
On the TV Plex App settings only shows the audio formats from the photo below.
Plex will transcode TrueHD and TrueHD + Atmos due to the limitations of HDMI-ARC.
dts-HD MA will direct play. However, only the core dts 5.1 is passed to your receiver. The “-HD MA” part is dropped due to the limitations of HDMI-ARC.
The Atmos version used by Netflix, Amazon, etc is Dolby Digital Plus + Atmos. That can be passed over HDMI-ARC. If you use the TV’s Netflix & Amazon apps and play an appropriate movie/show, your receiver will show it is receiving Atmos audio.