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I couldn’t get Kodi to output Atmos to my LG C9 even the TV supports Atmos on the Shield from Plex, Netflix etc, as soon as I plugged the Shield into my Denon Kodi started outputting Atmos, I think maybe Kodi doesn’t output Atmos unless your TV / Soundbar edid reports TrueHD compatible.   

I don't have any problems with Kodi and Atmos (lossy or lossless) on a Shield 2019 attached directly to an LG C9 (playing local content). 

Hi, so if connected directly to the C9 and you play a movie from Kodi with TrueHD Atmos, The Dolby Atmos banner displays on the TV screen? 

That's not what he said. Never the less with the build above chances are high you get it working.