That's not quite correct.
Dolby Pro-Logic decoding works in two ways depending on the source signal
When the signal is just plain stereo then yes, it creates a pseudo-surround effect using some fancy algorithms and phasing. This is simulated surround... but it's not the only way DPL works.
The other way is REAL surround information. 100% genuine. Pukka. The proper thing. Absolutely authentic. (Hopefully that's got the idea across clearly?) So here's how it works:
In a mixing studio somewhere where an audio track is being laid down, or built in to a player or source device such as Blu-ray player, Sky box or games console, a Dolby Surround encoder takes the centre channel and rear surround channel(s) and applies some fancy mathematical process to add them to the stereo Left and Right signal in a way that is undetectable by ordinary stereo gear. This is called matrixing. So we now have what looks like an ordinary stereo signal but embedded inside it is a secret code with centre and surround info.
These stereo signals can be analogue or digital. We call digital stereo ... PCM or even LPCM.
When a stereo signal is played through an AV receiver with a Dolby Pro-Logic decoder the "secret bit" is reformed in to centre and surround channel info. Abracadabra.... Surround Sound.... not simulated.... the real thing.
So what's the catch?
Part of the maths and embedding process leaves a bit of cross pollution between the channels. There's a bit of left and right in the centre and surround channels. It can never be quite as clean as keeping all the channels separate all the way through which is what DD and DTS and the HD audio formats for BD do.
To recap then, DPL/DPL II decoding can have a stab at making a surround effect from plain stereo, but most of the time in AV gear it's possible to create a Dolby Surround encoded signal that's carried as stereo and then decoded back to proper surround sound albeit not quite as precise as DD etc.
Like I said before, consoles aren't my thing, but if DD is an option then go with that.
I'm sitting here smiling because the irony of that statement isn't lost on me.
A little over fifteen years ago when Blu-ray and HD-DVD were still trading blows the AV amp manufacturers were scrabbling to get up to speed on the new 'HD' audio formats. Some brands had models with decoding for both the Dolby and DTS HD audio signals. Some other brands didn't. Those missing the bitstream decoders promoted the idea of LPCM. The argument went 'it's the same quality whether decoded in the player or the amp'. Of course, early adopters really wanted that little illuminated logo that showed 'D True HD' or 'DTS-HD MA.'
Ten years ago - about the time you were buying your TX-NR 515 - Curry's and other retailers were still doing healthy business on Blu-ray home cinema systems. (Sound bars were still in their infancy.) £200-£250 would have got someone a 5.1 BD-based system with Bluetooth and maybe NFC along with a few other bells and whistles. However, anyone who came to forums such as this were recommended to give such systems a swerve and buy an AV receiver + 5.1 speaker package instead. For £250-£300 these didn't decode HD audio, but they did have HDMI inputs and LPCM compatibility. Once again, the message was that LPCM decoding in the player was every bit as good as Bitstream decoding in the amp. Besides, compared to the crappy all-in--one DVD/BD systems with their awful speakers and limit of DD & DTS decoding then even DPL II from a £300 AVR + speaker kit was miles better.
Now I am sitting here reading someone championing LPCM over everything else. It's not surprising. Even after a good couple of decades of surround sound there's still a lot of confusion about sound formats. Some of that comes from writers not properly explaining the context of things.
LPCM isn't a quality of audio in its own right. It's more like a transport pipe for whatever the source player had decoded.
Lets say you play a DVD on a console which is set to output audio as LPCM. The DVD has Dolby Digital audio. That's exactly what LPCM will deliver; decoded-and-lossy DD as a multichannel signal.
Now imagine you play the extras on that disc. They aren't made with DD audio. They have stereo sound with Dolby Surround encoding. That's exactly what LPCM will deliver to the amp; a stereo signal with Dolby Surround matrixed in to it. This time the player doesn't decode it. As far as it's concerned it's just a stereo signal. You'd use the DPL II decoder in your amp to further process the stereo in to surround.
Now imagine you swap to a Blu-ray player also set to LPCM. Let's say a film being played has 7.1 DTS-HD Master Audio. That's exactly what the player will decode and deliver via LPCM; 8 channels of lossless HD audio.
In each of the above cases the amp receives audio as LPCM, but in each case the quality is different. It's the source signal rather than LPCM itself which determines the audio quality.
Thanks again for such a detailed explanation. Very much appreciated

Id say I have at best known a 'dangerous' amount about surround stuff. Enough to know roughly what I want...but not enough to really know what's best / worth it.
Even with my Z-5500's on PC gone back and forth between using Sound cards that encoded to DD or DTS and using the 3.5mm leads.
Cant say I ever could tell the difference, but remember the debates raging on about which was best. (Using on-board audio with 3.5mm leads now! )
I have a friend with a LG CX or C1, PS5 and a TX-NR535. He says he is getting surround, but isn't sure which way he has the PS5 / TV configured beyond that the PS5 goes to TV, and then audio to AMP via ARC.
I plan to head over to his place at some point and take a look and have a listen.
In the meantime, I think ill go back to the original plan and get a decent sub. Debating between spending less on a used eBay one, a bit more on the BK stuff (also via ebay funny enough!) or getting something brand new from RR with a 6yr warranty...