Glad that worked out for you. I was playing around in my AVR and was wondering what was wrong. Seems the function for PCM can be passed through 3 different setups on my end. Ultimately the TV setting solidifies it PCM.
As a sound engineer, I can't help but hear that the stereo field / loudness has been reduced under the signal now being uncompressed. I'll have to do more testing, but I'll keep the HDMI ports for my Consoles at PCM.
Just an update on this. I have a feeling that changing the TV setting to PCM didn't fix the issue, just masked it and there was some Dolby upmixing going on to make it seem like the rear channels were working fine. The reason why I say that is because in Miles Morales, when I would walk in front of a sound(someone speaking or car honking the horn), the sound wasn't coming from the rear channels but rather the front channels, which I know is incorrect because the same type of sound would come through the rear channels with Dolby bitsream.
I tried the Netflix Test Patterns video and had some interesting results:
With the TV setting at PCM and my PS5 set to LPCM, I was hearing a robotic voice counting up.
With the TV setting at Bitstream and my PS5 set to LPCM, I was hearing a surround sound speaker test with the center speaker getting cut out.
With the TV setting at Bitstream and my PS5 set to Dolby Bitstream, I was hearing a surround sound speaker test with all the channels outputting correctly.
I then tried the same video on LG's Netflix app and had similar results to the TV setting at Bitstream and my PS5 set to Dolby Bitstream(which would appear to me is the correct setting).
I then opened up Bugsnax with the TV setting at PCM and my PS5 set to LPCM and I was getting sound through the center channel normally.
It's a really weird issue and I hope Sony fixes it :/
That's an LG thing apparently. Bitstream of Dolby has had lag on LG TVs for a long time, it seems. There's a bunch of reddit posts going back a couple of years on the issue.
That's pretty annoying because we can't even use Dolby bitstream as a workaround while we wait for these issues to get fixed.