Feeling pretty dumb right about now... I just opened the case and discovered that the HDMI closest to the power port on the motherboard is routed to the HDMI furthest from the power port on the outside of the case.
Even though I tried both HDMI ports, I obviously didn't try it with the settings in my previous post after completely powering down the unit.
HDMI audio and video working now.
Can you confirm which HDMI port worked, (from the POV of facing the back of the case) the one on the left (outside) or the one on the right (inside)? I am using the one on the left and get video but no audio. If I move the cable to the other port I get nothing at all. If I am using the right HDMI port is there something else I need to do beyond selecting HDMI in the audio options to get it to work? I tried testing YouTube in the Pi Desktop and no audio there either. I am stuck. Thanks.