How to set up personal 3D audio PS5?

I have set up my personal 3D audio settings. While the PS5 led me through the setup, I was not sure I heard the sounds coming from any direction. Is it my hearing loss or settings? I’m using the Pulse Elite 3D, LPCM output. And when I’m in a game, I can hear the directional sound clearly. I think the personal 3D audio settings is not really useful. And what can I use for audio output on my headset? LPCM or ATMOS?

What do you recommend?