I am simply not familiar with any disc player using the same mode as the Apple TV 4K.
Getting back to the Apple TV 4K, those using it with a Flex HT must turn Atmos OFF in the sound settings. This will result in a signal recognized as multichannel PCM 7.1 when playing Atmos tracks rather than Atmos or Atmos/PCM when using an AVP/AVR with a Dolby Atmos decoder. Non Atmos tracks would be recognized as PCM 2.0 or PCM 5.1 whatever the case may be.
Again, those with blu-ray players could set audio output to PCM and Dolby Atmos and DTS:X tracks would be recognized as multichannel PCM 7.1. If using a universal player supporting SACD, multichannel DSD is output as PCM 5.1 24/176.
Things get more complex with macOS. Setting it to 8 channel output(7.1) in Audio MIDI settings will result in a multichannel PCM signal recognized over HDMI. This is also the case using Thunderbolt with a USB-C to HDMI adapter fitted with special firmware to make the mac think it is connected using DisplayPort. I had to work around the M1’s 4K @60Hz over HDMI limitation to get 4K @120Hz output.
Anyway, using 8Ch output over HDMI means all signals are recognized as multichannel PCM 7.1B and up mixing in the AVP/AVR will not work correctly. Two channel signals will have dialogue remain in the Front channels even when applying the Dolby Surround upmixer. The Audio MIDI would need to be set to 2CH output in this case for the upmixer to work properly. But, multichannel Dolby tracks will be fine using 8CH setting as long as Passthrough is OFF in apps that support it and multichannel PCM is output to a TV connected to a Flex HT or similar device.
There is much to consider when going the route of multichannel PCM from a source device into a TV and then out eARC to Flex HT to avoid an analog connection from a Dolby decoder equipped AVP/AVR pre outs to powered speakers.