I noticed that it still said pcm even though I changed it. I tried restarting it to see if it would make a difference but it didn't. If I goto the audio settings it shows that hdmi raw is selected so I can't explain whats going on there.

I attempted to update the box, it says everything is up to date.

There must be something that I'm missing for this to make any sense.

Maybe I'll try a factory reset on the box and see if that works. I'm running out of ideas