Haha! Long winded post here but bear with me.
First off,
@Oddball, no offense taken by your post. My first thought was just like
@antcollinet , "WTF?" Then I thought, cool, ASR has a bot named Oddball, and I love Kelly's Heroes

Also, I hope I'm not offending you at all here, definitely no offense meant, your post just read kind of like something AI would write.
The question is generic which should apply to all AVRs/Prepro's, but I'll get specific and give context for my question.
The rabbit-hole started when I was listening to a new (to me) ATMOS music disc for the first time, Pink Floyd's "Animals". 25 minutes into it, in the song "Pigs", I heard some deep bass that sounded clipped. It sounded obviously "wrong". My first thought was that I've screwed something up in my gain structure for the subs. Checked that and the fact that I can turn down the MV really low and *still* hear it means that it's not me. So, it must be the source.
I ripped the Bluray and extracted WAV files (8 of them for 7.1). I examined the waveforms at the "bad" spot and there was no visible clipping. I ran RTA against the WAV files (using REW) and can clearly see the the offending tone is 17Hz. My subs are all sealed so there's no chance of port noise. (17Hz is close to where a lot of people tune their ported box to so a valid assumption would be port noise).
So it's not me, and I couldn't see anything in the source waveforms, so the only thing that I have ZERO visibility into is what the AVR is doing when it sums low frequency content from all bed-layer channels. Is it possible my AVR is clipping the sub output?
I'm using a Panasonic 820 player and the AVR is a Yamaha A8A.
My understanding of the way the LFE channel is handled is that the mixer (source) attenuates the LFE by 10db and the AVR adds it back internally.
Let me go back and read all the responses over again. I didn't completely grasp it all so my question may indeed be answered. I didn't see anything beyond speculative answers (which is completely fine) but I need to understand it better so I can possibly test the theories somehow. (Really what I need is a way to mix my own 7.1 content with low-frequency test tones in all channels and view the analog preamp outputs with a 'scope to see what happened in the AVR).