I finally had some time to play around with my settings. After connecting my Xbox directly to the tv and getting my HDR settings to work I made sure that the HDMI UHD Color for each HDMI input was turned on. I switched back to connecting the Xbox to the soundbar and ran into a problem where I repeatedly got the error Mode not Supported change external devices resolution. Having to switch my HDMI cable back to the tv to do so I tried every resolution my Xbox would switch too but continued to get the error. I was finally forced to do a reset on the soundbar. However, the problem has now corrected itself. After the reset, the Xbox connected to the soundbar is showing all green and the 4k HDR pass-thru is working. I did lose VRR in my Xbox settings but I'm okay with that. I have my Xbox Sound setting for ATMOS and it seems to be working. I do, however, can't tell if ATMOS is on when watching ATMOS content as there is no indicator on the TV like it does for HDR content. So I'm just assuming ATMOS is working.
All in all, I do believe it was the HDMI UHD Color for each HDMI input that needed to be manually turned on in the TV settings for external devices that may have fixed the problem. That and patience trying to get the entire system to work. So far I'm happy now and have ordered the wireless rear speakers to complete my setup.