Yes, I would have thought so, too. I cycled through all the DD options in the LMC-1. The Dolby Modes are:
3-ch
PL2x Music
PL2x Movie
PL2x Matrix

and maybe another one, I can't remember.

Thanks,
Rodney

Rodney

Denon AVR-3312ci
Mains: M22 v2
Center: VP150 v2
Surrounds: QS8s v2
Sub: HSU VTF-2 MK3