airpods spatial audio not available on my mac

I am also having this same issue. I also have a 2021 16" M1 Macbook Pro (12.2.1) using AirPods Pro. I've gone through how to enable spatial audio with Dolby Atmos in the Music app, and it's set to Always On with the sound quality set to lossless. Like the original poster, I have a second gen iPhone SE that works perfectly with spatial audio with my AirPods Pro.

When going through the Control Panel to choose Spatial Audio for my Airpods Pro, it's grayed out and says "Spatial Audio Not Available".

Hi Rob Andretta,

It sounds like spatial audio isn't working on your Mac with your AirPods Pro. We're glad you've joined us in Apple Support Communities. Let's see if this helps.

What happens when you follow the steps in "Get a demonstration of spatial audio on your MacBook Pro" in Listen with spatial audio for AirPods and Beats? You mentioned this is a new computer, but sometimes new computers have small updates that are needed for features to work. Check out the steps in the section "Choose how to listen to Dolby Atmos on your Mac" in About spatial audio with Dolby Atmos in Apple Music.

If the issue remains after following those steps, let us know what steps you tried from above and the specific version number of macOS you're running.

We hope that helps with your question and take care!

As a side note, I did change the the Dolby Atmos setting to Automatic and rebooted the Mac, but it did not make a difference.