Check to see if you hooked the left channel pre-out to the left speaker. When I first ran my auto set up, I found the RCA pre-outs were oriented different than the 975 I had previously. I mistakenly connected the Left out to the left back surround channel. (same for right) I heard the testtone coming from the left back channel and got the "fail" message. I reconnected the pre-outs properly and completed the auto set up.
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Main HT <> 976 <> 7200 <> Ultra-X12 <> sapphire ST2 mkII RF/LF <> sapphire SC center
sapphire ST2 mkII SBR/SBL <> sapphire SS SR/SL <> Verizon/DVR <> Vizio M70Q7 <> Oppo UDP-203 <> Amazon 4k Fire TV