I have my tv connected via HDMI-ARC so that I can send the audio of any of the TV streaming apps to my Model 976. I have the TV input on the Model 976 configured to use HDMI-ARC as source. My other inputs which use coax are not impacted in any way. The only important note is that HDMI OUT 1 is connected to the TV input that supports ARC.

The signal path is entirely determined by the configuraion of the input.
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Outlaw Audio Model 976 / 7700 / Ultra-X13
B&W CM9, CM Center, DS3 (side), DM303 (back)
Blue Jeans Cables (XLRs, Canare 4S11 Bi-wire, HDMI)
Tivo Bolt, Xbox Series X, Panasonic ub820, AppleTV 4k, LG C765P
Roon, Allo Digione Signature, Sonore MicroRendu, Uptone Audio LPS-1, Peachtree Audio Nova 150
GIK Acoustics Soffit Bass Traps, 244 Panels, Monster Bass Traps, QRD7 / Polyfusor Diffusers