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for anyone following this it’s still happening on 17.1! Can’t believe it. Despite getting a new remote sent to me a few notes back. They’re now going to have me send my atv back for “repair”.
Have you tried a different HDMI cable, preferably one that’s better shielded than the one you’re currently using?
 
Have you tried a different HDMI cable, preferably one that’s better shielded than the one you’re currently using?
Yep tried that along with resetting ATV to factory and also changing chroma settings as some suggested. No change.

I’ll see what happens after they repair the ATV unit but given others had it continue with the replacement units as well I don’t have high hopes.
 
This really feels like a hardware change issue with newer Siri remotes

I have 8 different ATV 4k's with Siri Remotes (touchpad versions, with the white circle around Menu button - 2nd gen I think they were technically?) and I've never once had a single issue like is described in this thread.
 
I'm afraid it's a misconception issue Apple will never fix. They answer politely when you ask for a replacement, but they know it won't solve the issue.
My remote + my AppleTV + my HDMI cable have no issue on a friend's TV (recent TV set), but have on mine (old Pioneer plasma).
Now the remonte won't disconnect anymore, but sending IR signal (volume + or -) is a pain as I have to press the button 5 times or more to get it to work.
 
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