Searched like hell… cannot find this issue but probably very basic… Let’s see if someone can help!
Have had Vero working OK on an HDMI Monitor for a while, with Monitor showing video and playing the audio through it’s built in speakers.
Today finally moved Vero to its final home connected to the main telly (retiring the RPi currently there!) Video works perfectly, but no audio.
In Settings, go to Audio and see that it’s set to S/PDIF but greyed out and will not let me change it to HDMI. This is odd as (a) I need HDMI and (b) I’ve never had it set to S/PDIF before.
Any ideas?
EDIT: Also maybe related, it’s connected to the TV indirectly through a Maxell speaker system (100% as per old RPi unit - same cable!)
(PS I note also that the the Video is fixed/greyed out/unchangeable too… but happens to be at the correct value… But was wondering why I don’t have options to fiddle with that too… Connected to audio issue??)
Can you try bypassing the Maxell system as a test please.
OK, done. Connecting Vero HDMI directly to TV works fine (sound works, and System display shows audio as hdmi)
So the presence of the HDMI middle-man Maxell speaker system seems to cause the problem.
Which is surprising as it’s well-tolerated by the olde worlde RPi that the Vero is replacing. 
Suggestion: while it’s clear that the Vero is failing to auto-detect summink correctly, and I’d be delighted to help debug what/why, could I suggest that the Vero should offer the user an option to override such things and simply “do what I say”? Auto-detect is lovely when it works, but there will always be cases where it won’t.
Meanwhile, what next to move this forward?
Can you enable debug mode in Kodi, reboot, then capture full debug logs using the Log Uploader feature with the Vero connected directly to the TV, and then again booting up with the Maxell speaker system connected in line ?
Confused…
OK, first things first:
But why confused? Well, as per last update, when connected directly, Audio correctly as per HDMI.
And now, despite hard power cycle of Vero and Maxell, it persists in staying at Audio = HDMI (i.e. working) even when connected via the Maxell speaker unit.
Which is good-ish. I’ve yet to exhaust every combination of power-off/reboot - the fault may yet come back for all I can tell. But as of time of writing, audio seems OK via Maxell unit.
Tomorrow will test more comprehensively. And maybe the logs show something despite the fact that it all works? 
It’s possible that you originally booted the Vero while speakers and/or TV were turned off.
Some HDMI devices do not respond to edid queries when they’re off or in standby so if you boot in that state it won’t know what graphics modes and sound formats the destination supports, so boots up with some “default” options.