If I select “Home Theater” it “thinks” I want to add a new device and will only offer the UNUSED HDMIs so not really useful there.
But now things are acceptable at least, not perfect but acceptable. Thanks a lot.
The only difference between that and a multi-channel setting will be you won’t be able to play multi-channel LPCM. It will be downmixed unless you also enable AC3 transcoding.
TYVM
May you be so patient to explain what this practically means to this unwashed and unkempt medical doctor please? 
PS Reading Understanding 8-channel LPCM over HDMI: Why it Matters and Who Supports it to try understanding, but failing
Audio comes in two broad categories: uncompressed (called LPCM or just PCM) and compressed. HDMI can carry up to 8 channels of uncompressed audio (ie 7.1). S/PDIF and ARC (which is sort of a reversed HDMI) can carry only two channels of LPCM but they can also use those two channels to carry up to 6 or 7 channels of compressed audio.
So if you are using ARC, the only way to get 5.1 audio to your soundbar is to use the compressed formats AC3 (Dolby Digital) or DTS. If you set the speaker layout to, say, 5.1 in Kodi and play 5.1 LPCM audio, all you will hear is front left and front right channels. The rest will be lost. If you set the speaker layout to 2.0, the 6 channels will be downmixed to stereo so you will (importantly) hear the front centre channel which usually has most of the dialogue on it.
Now if you enable ‘AC3 transcoding’, Kodi will convert 5.1 multi-channel to AC3 (Dolby Digital) which may make it through ARC to your soundbar. I say may because all TVs are different.
HTH
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May you live a long, healthy and fruitful life Sir 
Very clear now.
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I think the way the magic remotes work is that you can program them easily to operate as universal remote for IR control. It looks like you programed this for a FLIRC (which uses IR) using a specific FLIRC profile. I have no clue what IR commands that actually sends out. If you wanted to use CEC control you would have to figure out how to program the magic remote to control via CEC instead of IR. Alternatively You can control a Vero via IR but you would need to select a remote profile in the My OSMC add-on for it to respond to and then program your magic remote to send out commands for the type of device you enabled there.
@darwindesign. thanks for trying to help. This LG E9 TV is so smart 
that it does a ton of things without consulting me at all I have no idea as to why this FLIRC thing was activated.
I am now in a good position for audio and video to be reproduced very well.
The only current drawback is that I need to have Vero’s remote to use it.
Bearable Not ideal but okaish
I am slightly afraid to try resetting the AV settings and start anew. This might magically fix things OR it could break them again.
Will ponder on what you suggest and decide.
Cheers
Do the volume buttons on the Vero remote adjust the volume on your soundbar or just Kodi?
The soundbar volume is now controlled by the LG remote. A big win for me since before I needed a third remote (the Yamaha’s soundbar remote).
The Vero remote does control the soundbar too I hadn’t noticed it but now that you mentioned tried and got a surprise
This means that you have CEC working on the TV, soundbar, and the Vero and if you can figure out how to program your remote to forward CEC requests you should be able to control Kodi from the TV remote. This also means that if tweak your CEC settings in Kodi you should be able to turn on your TV and switch to the appropriate source, as well as turn off your TV with the OSMC remotes home button which may help minimize the two remote issue. The Kodi mapping are found here…
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Thanks a lot for this. Will study and try understanting.
Think you still have the Vero connected direct to the TV…
Regarding controlling the Vero from the TV remote, no settings change but try the following specifically in this order:
1 Have TV on and Vero on and booted up.
2 Switch to HDMI on TV to view OSMC
3. Shutdown Vero from the Power menu (use Vero remote if needs be)
4. Once shutdown, the TV may go into standby (that is a good sign!)
5. Unplug power to Vero,
6. If TV didn’t go into standby, using TV remote put TV in standby
7. Wait 10 secs, and plug power back into Vero
8. Wait for it to boot up
9. Wait some more…
10. Hopefully, once Kodi has completed loading it will power on the TV
11. If it does, trying navigating (Up/Down.Left/Right buttons) using the TV remote
Does it work?
(I was pulling my hair out for days because I couldn’t get my Panasonic TV remote working. I happen upon the above and it seemed to work for me. I’m not sure why, it’s like the TV needed to be one-off “programmed” for a new HDMI device)
Thanks a lot for trying to help.
Number 4 does not work.
Number 10 does work.
Number 11 does NOT work 
Now there are some CEC flows working.
The TV remote manages to change the volume of the soundbar attached to HDMI2-ARC.
What is even more interesting the Vero (attached to HDMI1) remote also manages to change the soundbar volume.
Only the navigation does not work yet.
An expert up here hinted I should understand how to program this LG Magic Remote for OSMC’s CEC but I’m still struggling to understand.
Anyways, no big sweat, I just use the two remotes and enjoy the beautiful beautiful images of this TV