Transcoding 7.1 audio to a receiver that does not support Dolby TrueHD, E-AC3, and DTS-HD

I recently bought a second-hand AV receiver, a Pioneer VSX-1017AV. This receiver has a decoder for the formats:

Dolby Digital (AC-3)
Dolby Pro Logic II/Dolby Pro Logic IIx
DTS-ES
DTS 96/24
DTS Neo:6
DTS
WMA9 Pro

But there is no decoder for Dolby TrueHD, Dolby Digital Plus (EAC-3) and DTS-HD codecs.

As far as I understand, Vero 4K (the media player I have) can transcode Dolby TrueHD, EAC-3 and DTS-HD codecs to AC3…but the latter is only compatible with up to 5.1 channels. Is there any way I can get 7.1 channels through a digital connection (optical or HDMI)?

Alternatively, if I buy an “audio extractor” like this:

Can Vero 4K provide LPCM 7.1 signals?

Yes, but only via HDMI, optical is not possible.

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There is a comprehensive guide on audio configuration that can be found at the following…

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There are two things you need.

First is to get Vero to transcode the 7.1 encoded audio to LPCM 7.1. Set Number of Channels to 7.1. Then, either turn off passthrough completely so that everything plays as LPCM or turn on just the passthrough modes your AVR supports: AC-3 and DTS, and turn off ‘Use DTS Core’ to force DTS-HD to be converted to LPCM.

Now you have up to 7.1 LPCM playing through HDMI, that needs to be converted to the individual channels. I read a review that suggested your AVR doesn’t decode and play multi-channel audio from HDMI. That’s surprising but if true, you will need an audio extractor like the one you linked or you could use a USB soundcard with 8-channel output.