Hi Ari let me explain further.....I have made some progress...
Xgimi H1 connected to Sony STR-DN1080 using ARC
I have downloaded some Dolby Atmos demo files from Here the leaf and amaze trailers.
So the good news when playing these files using the inbuilt File Manager the Atmos is being passed through this is great news, movie plays and Sony is showing ATMOS on display.
Hear is the problem I downloaded Kodi and VLC Player, both cannot recognise the audio passthrough of the X1, they will only output in 2.0 audio.
Anybody know why they cannot pickup this feature are they old versions on the apptoide store? it cannot be a hardware limitation as your in-built file manager can pass through the audio perfectly.