I've got a Yamaha Rx-V377. It has no trouble with the Xbone. It will output PCM or Bitstream based on what I tell it to do, which in most cases is Bitstream because I have faith that my reciever is better at decoding.

Mind you the audio is still sent via ARC, but it sounds much better. I've heard that in general for gaming, PCM is actually better because even though it is just a stereo signal, it is also lossless and uncompressed. Most games don't have dts or Dolby quality sound, so that makes sense. Maybe PCM and then let the receiver receive it and convert to pseudo surround sound is the way to go.