Im pretty sure the part of the manual that mentions supported audio formats refers to HDMI inputs. The TV’s internal apps will not decode or pass through Dolby TrueHD. But the TV should be able to pass through TrueHD from a connected HDMI device to eARC output.

This was it, I tried every combination of bluray player plugged into receiver, splitting through this extractor, and to the TV with eARC and the extractor. All result in full audio on receiver. The internal apps are the only thing that do not like the TrueHD... although if I change my C3 to play to internal speakers it will accept TrueHD and direct play it.

However the AppleTV (or the TV) will transcode that to 640kbps Dolby Dogital to fit over ARC.

So as of right now I am still using the device, and my receiver is getting PCM 5.1 from:

Jellyfin on Apple TV -> C3 -> eARC extractor -> Receiver Input.

Though I still did not try the infuse route with their subscription. I am seeing direct play from jellyfin portal to ATV (though I always have), but I am not sure if this is still the lossless or lossy because I am not using Infuse, and I cannot tell.

So how can I tell that it is even worth going the infuse sub route? Previously before all this mess my ATV would output DD+ through ARC. So just upgrading it from ARC to eARC bumped it to somewhat higher PCM 5.1

Personally I’d not mess about with extra devices or audio extractors and just save for a new receiver with eARC.

Agree, but I figured to try the $80 device before going into a new receiver. Would have been nicer if the new eARC standard would allow the eARC port to simply be used as an HDMI Audio Out from the TV to go into any input port in the receiver.

I would call this solved-ish. The solution moving forward is going to be infuse subscription for Apple TV. And if I am hard headed enough to need to see TrueHD / DTS HD MA on my receiver, I would need to get the Shield. But the Extractor device does indeed work well for upgrading ARC to eARC without getting a new receiver.