I'm converting my Avatar 2 3D Blu-ray to be used in Quest 2/3 and trying to figure out what's the best format for audio. I'm no expert, but to me it feels that between 7.1, converting 7.1 to stereo, and converting 7.1 to binaural stereo, then binaural stereo is little bit better than 7.1 in Skybox. Binaural feels a bit fuller, although the location of audio source feels the same eg something passing from left side of you.
I used this https://www.noisemakers.fr/product/binauralizer-studio/ + https://www.reaper.fm/ to convert 7.1 to binaural.
But now I've learned that there's also 4k version of the Blu-ray that has Dolby Atmos audio option. I red that Dolby Atmos in itself does not have channels, but 3D objects, and it adjusts itself on the amount and location of speakers you have in your home setup. So is the Dolby Atmos version the best for VR in the context of audio (with headphones)? If that's true then would it also be possible to create Frankenstein version for video from 3D bluray and audio from 4k bluray? I know it's technically possible already so the question remains - is Dolby Atmos the best in Skybox? Nevertheless I'll probably try out 4k version of Avatar 2 in Dolby Atmos in Skybox.