Yes, but this is actually why I prefer it. As I said, I play primary modern electronic music and I very much like both the envelopment and the steering of the music to the various channels.
I get this may not be desirable with many genres. ie. Probably not necessarily what you would want with, say blues or jazz. However, I find it works very well for what I am playing. YMMV.
Electronic Music as a genre is inherently artificial, and the artificiality of the DTS rendition of it, is not "out of place" - the combo works...
But for acoustic instruments, recorded so as to provide a you are there (or they are here) impression of reality with a stereo setup, it messes things up.
Hence it (as always) comes down to what your objective is.
There have always been those who prefer a classical orchestra to be portrayed as if they were sitting surrounded by a three dimensional bubble of instruments with sounds coming from all directions (including height)....
Others have preferred to have a portrayal more akin to a concert hall, (which isn't exactly a paragon of "imaging"!), still others want to hear a small baroque orchestra playing in their listening space.
My own preference is to allow the "native" mastering of the original recording to dominate, while using the multi speaker surround setup to lightly enhance it - for stereo music.
For surround material - I expect the surround effects to be rendered authentically, and properly steered to the desired (by the mastering engineer who recorded it) location through optimal use of my speakers/room/setup...
Those are my "perfect" world expectations... for music which is 99% stereo, I historically preferred L7 Music - but I have not owned hardware capable of that in circa 20 years.... after L7 left the premises, PLII was my next best option... more recently DSU (with PLII not available on my current hardware), and for the last 2 months Auro and DSU have been competing - both seem to do a good job, I am not convinced that I inherently prefer one over the other - but DTS is definitely NOT in the running. (my preferred music is almost always acoustic instruments rather than electronica, and DTS ends up frequently sounding artificial)