You make a good point about HDMI cables. I have discussed why I have ruled out the HDMI cables, but this is a very long tread. I only have a cheap 3 ft cable between my ATV4K Gen 2 and my Denon AVR. That short of a cable should have minimal issues with reflections or other transmission line effects, and it works perfectly with my Gen 1 ATV4K. I have also swapped the Gen 2 ATV4K to another HDMI cable and input on my Denon AVR (I have both the Gen 1 and Gen 2 connected to my Denon to conveniently test the latest tvOS releases), with no difference in the Atmos problem. Also, I do not believe it makes any sense that a HDMI cable issue could specifically target Atmos audio and leave all other audio formats and the more error-susceptible video completely free of any artifacts. I have run the “Check HDMI Connection” test numerous times and it always passes. In my case, I believe I can safely rule out the HDMI cable.
As for the Atmos decoder/processor, I have also discussed this. I suggested that different Atmos decoders/processors handle errors differently. Some may simply blank the audio to protect the speakers from potentially damaging pops/static, while others may replace that gap with the last good adjacent audio, similar to what CD players did to address errors due to dirt and scratches. There is also going to be variation in how far outside the MAT 2.0 Atmos specification the Atmos decoder/processor will accept before it detects an error. This is all just my speculation.
As I pointed out in a prior post, Ara Derderian, cohost of the “HT Guys” podcast (1050 weekly episodes and counting!), also never noticed an issue with Atmos until he played Drive to Survive per my suggestion. It is very possible that those who claim no issues with Atmos simply haven’t played more problematic source material. I believe I have proven that the Atmos issue requires very high video bandwidth, so the ISP service and other speed-limiting factors, such as Wi-Fi, may also play a part. No-one with less than a 4K TV or feeding the video through an AVR that doesn't support 4K (not sure if there are non-4K Atmos AVRs) will ever experience the Atmos problem.