Spatial Audio not working on PS5 after current update.

I am on ps5 and before the update I was able to select spatial audio as an option in game for my audio but now after the update I cant seem to select Spatial Audio and the option says "Unsupported Format, Defaulted to 3D Headphones" Nothing has changed on my end. I use same wired headphones Sony wh-1000xm5 and my audio settings on ps5 are same. Footsteps on spatial were great to hear and I could tell the direction but now it is all weird cant even tell where the enemy is coming from. It only happened after today's update. Any help or fix that could enable spatial on ps5 would be of great help.