Thanks John for your suggestion. I just have to figure out if I got the space in my new space if I can have 2 more speakers for the center back position.

Chess I tried one thing today that gave the surrounds more depth. With the surround speakers pointing towards the listening position on left and right of seating position. That gave a more localized sound as you have noticed in your tests. What I tried today was toeing out the speakers towards the back of the listening position. This definitely got rid of the localized sounds and gave it a more dispersed depth without losing detail of the rear sounds.
My friend bought the QS4 off me and so I can not test anymore with that speakers.

Saturn

ps: You definitely got better ears than me.