I currently have Logitech x530 paired with this USB 7.1 surround sound card:
https://www.amazon.com/LEAGY-External-Sound-Card-8-Channel/dp/B07VSHCGWD
I wanted to connect it to my Samsung smart TV with S/PDIF optical cable, but it didn't work. Optical cable is lighting red, so connection works, but it doesn't want to produce any sound... I've tested the soundcard using USB on my laptop, and it worked flawlessly. TV doesn't recognize USB as an audio outoput, as expected.
As a sanity check, I've tested it with TCL Google TV, but it also doesn't output to S/PDIF output... I even couldn't find a setting for switching to it in audio settings!
To counter that problem, I was thinking if there was any way to avoid using optical with my TV, and just create my own reciever that will connect to TV via bluetooth to stream that surround sound.
I've found project called "balenasound", but I'm not sure if it can stream surround sound dolby audio...
What are my best solutions to fix this issue? Should I continue with Raspberry Pi DIY reciever or I can do something even better?
Ahhh, you do know this isn't reddit, right?
Like, I get it, you're looking for help and all, but when you're trying to apply what a subreddit on reddit covers to a community on lemmy, you're going to run into a wall before you even get started.
Lemmy largely exists to avoid reddit where possible. It's made by people that weren't happy with reddit, and populated by people that weren't happy with reddit. You can't really hope for much when trying to cross over.
But a different user gave you the best advice, which is to focus on getting what you have to work. This thing you're asking about isn't meant for what you're wanting to do, so it's going to take just as much work you get going, if it will work at all. I've never used one, but I've fucked around with similar stuff before.
If anything, look into a home theater receiver. You'll get better sound anyway, with far less hassle.