Series X is connected directly to the TV and I’ve set my Xbox to stereo uncompressed. However, TV does virtual Dolby atmos and surround virtualization.
Also have the Dolby Access app which I use when earbuds are connected directly to the controller for audio.
Should I leave active spatial sound on or off in the sound settings?
The actual output format is selected by the user, and can be abstracted from Microsoft Spatial Sound implementations; audio will be presented to existing speakers, headphones, and home theater receivers without needing any code or content changes.
Here is a link to the article that may provide some insight: