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Roku Express audio setting question

On the Roku Express, under settings - audio, there are Audio Mode and Digital Output Format options. Both of these have a stereo option. My question is what exactly is the difference between these two stereo options? My Roku Express is connected to an AV receiver. Regardless of which one I switch to stereo, it "seems" to do almost the same thing. However if I toggle the Digital output format one to stereo, it seems to sound a bit better than toggling the Audio mode one to stereo.

Note, I am being forced to toggle this to stereo when using the DirecTV Stream app. Otherwise I get too many audio dropouts with surround sound when the receiver looses sync. Any time it glitches (which is way to often) it takes a second to re-sync which is annoying as heck. This is very similar to the Apple TV app audio issues noted in a different thread. 

On a related note to the DirecTV Stream app, I have a friend who is having the exact same issue. They have a totally different ISP which leads me to believe it is an app issue (just like the Apple TV one), since al other apps have zero issues with audio,

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