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Join Date: Jan 2001
Location: upstate NY
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The problem is in the player's settings, not in the receiver. It needs to be set to "bitstream" on and "secondary audio mix" off.
Your symptoms are consistent with having "secondary audio mix" still enabled in the player. Having it enabled forces the player to decode the audio so it can mix in the menu sounds and any secondary audio stream. Many recent Blu-ray players can only decode Dolby TrueHD into stereo (and many current generation players can only decode DTS-HD MA into stereo). Their manufacturers didn't want to pay the extra license fees to provide multichannel decoders.
Marantz SR7009 avr + MM9000 amp --> Atmos 7.1.4
Fronts=NHT 2.9+AC2, FH+TM=DefTech PM1000, LCR+TM amped