Did MS disable Dolby Digital for headsets to make us buy it back via Dolby Atmos?

reecie

Xbox sends audio out using two parallel streams: a multichannel one (labeled as Speakers audio in the settings menu) and the stereo channel (labeled Headset - this is normally the controller connected headphones). Your TB are connected to the multichannel side via the optical. You only send Atmos/Sonic stereo down that optical channel if you tick the box that selects that your headset is connected via optical or hdmi. You haven't done that as it greys out the multichannel options.