WD won't see my AVR via HDMI?

When I select Audio HDMI pass thru → Auto  It comes back with my TV doesn’t support this. I then have to manually select all the formats my AVR supports This is odd as the WD TV LIVE PLUS’s HDMI cable goes directly into my AVR. 

Am I loosing any functionality by having to manually select the formats?

Nope, you’re actually forcing it to do its job.

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