Just stumbled on this thread after researching the same issue commonly shared here i.e. Plex unable to transcode DTS audio or DTS-HD MA to DD5.1 output to the Sonos ARC.
Plex client<>server set-up is pretty straight forward. Shield TV Pro (2019) > LG OLED 65" E6 (the E6 is being replaced by a 2020 65" GX soon) > Sonos ARC (part of a Sonos 5.1.2 setup), directly connected to TV ARC HDMI input. HDMI passthrough enabled, option for DTS and DTS HD capable receiver disabled.
I tried both the Kodi app and Plex Add-on within the Kodi app on the Shield TV and I’m still unable to get the Plex server to transcode all Non-Dolby audio content (i.e. DTS of any flavour) to DD5.1 like it used to on my Playbar, before “upgrading” to Sonos ARC. Not sure if I missed an audio config setting on the Kodi app, but tried everything I could think of.
During DTS or DTS-HD MA playback on Plex, the movie playback settings indicates “Direct Play” of the audio steam which of course is incorrect, since the Sonos ARC is unable to support DTS and hence, needs to transcode. So I suspect something in the EDID (extended display identification data) is telling the Plex server that the Sonos Arc supports all audio codecs, and therefore requires no transcoding, but the actual output (for non-dolby formats) is indeed 2ch audio.
It’s frustrating, as I was fixated on jumping on the Atmos bandwagon with this new Sonos soundbar, only to discover that DTS transcoding (temporarily crippled?) on the Sonos ARC is only outputting 2 channel audio.
I hope the addition of LPMC support in a future Sonos firmware update will resolve this issue. The lack of LPMC on the Sonos ARC also affects multichannel surround output when gaming.
I’m a big fan Sonos (and huge fan of Plex ;), but I agree with a previous Sonos user forum post, that it seems Sonos is always missing something with their Home Theater products and it comes down a user experience (primarily affecting the AV enthusiasts niche market) of trade offs, work arounds or compromises or everything in between.
I’ll be eagerly following this thread to get further user insights and hopefully get this issue resolved, sooner rather than later…hopefully! Cheers!