Thanks for reporting back, it's good to know that LE11 has working video so I guess it's one of the other (X11 or maybe kodi) changes then - nvidia driver in LE11 and LE12 seems to be the same version.
BTW: I didn't have much luck with the 535 Nvidia driver on my workstation with RTX 4060, Xorg just crashed.
I guess sending audio to a different HDMI/DP output should be possible, lots of people are doing that on RPi4.
First make sure your amp is detected as a valid video sink: the HDMI audio devices in kodi should have the name (or model number) of your TV/amp/... written next to them (eg something like "Foo Bar on HDMI" )
Also make sure video output on the HDMI/DP port is enabled - check with xrandr.
There's no audio output without video so if the cable or amp is too broken to be detected or if video output on the port is disabled it won't work.
so long,
Hias