I found a temp workaround though, its to change the container format from .mkv to m2ts, this way i can keep Dolby Atmos and it plays properly now,

But tbh i shouldn't need to do things like this if Sony would just push an update to allow the support

Edit as of 24/12/2021 - extra solution is to ignore the dumb user Sonyvores, they bumped there head too much,

3 weeks later after my last post i said i have my solution and yet they feel the need to troll yet again with there stupid assumptions that are un-wanted and asked for.