[wrxtasy]

Or maybe the "Digital sounds" setting is the passthrough option at the Android level (that is, for all apps) ?

- PCM would be no passthrough, Android decodes the signal and sends PCM

- HDMI would be passthrough to HDMI output

- SPIDF would be passthrough to SPDIF output

So if Kodi is set to passthrough ON, then obviously it doesn't care of the Android setting.

Is it correct ?

Yes you have got it - Kodi does not care anymore what you set in Android Settings - other Android Apps however will.

There may be one or two exceptions.