m16 R1, Dolby Access Atmos doesn't work

Hello everyone, first time starting off a forum to resolve one of my issues.

On 2nd Jan 2025, my windows automatically installed a driver update called Dolby-Extension-9.823.747.16. On 3rd Jan, 2025, I noticed that the Dolby Atmos wasn't enabled for my headphones and when I opened the Dolby Access application to enable and change some settings to watch a movie, I was asked to purchase a one-time license for 18EUR. I reached out to the customer support, earlier through chat support. Some background information, I'm from EU and so my laptop has 2 years of warranty and I had purchased 1 year premium support which ended last April. The chat support has urged me to contact paid support who asked me to pay 48GBP (literally more than twice the actual license) to continue with the support after which I contacted the support through WhatsApp channel, whom at first assured me that it won't be paid and that they'll see through that the issue is addressed, later on gave me one ultimate solution to reinstall my OS and to see if the issue is resolved, else to resort to paid support channels.

Exact words were as follows:
"Thank you for your time and patience. I had this case reviewed. This issue appears to be caused by the OS.
This issue sometimes happens due to Windows update or sometimes due to other OS installed. To address the issue, you'll have to reinstall the OS on the computer. The primary step before initiating Windows Reinstallation is to back up data. Please note that Dell does not assist with data backup or recovery as it would involve having access to your personal data or sensitive information. In case you do not prefer to back up data on your own, you could also consider reaching out to a local technician for assistance. I would like to inform you that, as the system is currently out of warranty, our support options are limited. For any software-related issues, please reach out to our paid software support team for assistance.".

I also contact Dolby Support who suggested that it might be due to reinstalling OS which seems counter intuitive

Now I'm resorting to a third option where within Windows->Update->Recovery is an option to basically reinstall the windows OS and I'm curious if anyone else had a similar issue or have any idea on how to resolve this other than to reset my PC as a whole? I have a lot of software and it'll be a huge pain to reinstall all of them after.

Please do let me know. Hoping to receive a solution at the earliest.