Now since HDMI-CEC is disabled on TV, I realized that ARC is disabled as well, which means I cannot stream audio to the AVR when using SmartTV.
Connected cable directly to the TV via HDMI. Now I lost DD over ARC and overlay or access to AVR's Menu while watching cable. Alright, I can use optical directly from the box, but this still doesn't resolve the issue with access to the Menu. Yes, I don't need to use menu every 5 minute while watching cable. But that's not the point. It's supposed to be one connection to the TV and AVR must work as an HDMI switcher, on top of having great audio.
It's already annoying that it takes like several minutes for all HDMI components shake their hands before they all agree that I am allowed to watch this picture. But then AVR switches to TV by default on start up, and the shaking hands process begins from the beginning since you have to switch to the cable now.
I still don't understand why Denon decided to default to TV when AVR starts up. Why there is no option to select what source the device defaults to at the start up.
This is not how I imagined this set up will work.