Originally Posted by chefklc /forum/post/19507318
I'm not the best advisor for your situation, I don't do miniDP to HDMI personally, and VLC, well, it's my player of last resort...I've always found it a little too tedious and overly-complicated to configure (though admittedly, it's nice nice to be able to tweak so many minute details for those rare occasions that you need to.)
What audio did you include in the MakeMKV blu-ray rip? The answer to that would probably dictate your best setting.
From what you described, if you're playing back a MakeMKV blu-ray rip with the core DD/DTS 5.1, then I suspect you'd want this option:
If your rip only has the down-rezzed DD 5.1 or DTS, and the AVR lights up when those "encoded" tracks are passed through, then it seems to me it's functioning properly. For Core Audio and most media players in OS X, selecting "encoded" means you want the Mac to hand off the signal untouched and let the AVR/external device do the decoding.
When you did your rip, did you tell MakeMKV to also retain the original HD audio? If you did, that's where the PCM multichannel might be coming into play, and it would be worth investigating what VLC is actually sending and what your AVR is receiving.