As You Can see HDMI0 and HDMI1 is available.
The image shows "EDID=none" and whatever causes no EDID to be read is the source of your problem as Kodi determines HDMI audio capabilities using EDID data from the HDMI connection at startup. No EDID = No audio.
The config.txt and distroconfig.txt files are full of changes from known-working defaults; although most are #commented out and are legacy items which are no longer supported, there are also other items present which will change behaviour.
In short, this is not the clean install that you were asked to make (it looks like an upgrade from an older LE9 install) and there is so much config mess from you guessing at things that it's not clear what change(s) might be involved. Please go make a true clean install. Unless there is a self-inflicted problem with bad cables or HDMI adaptors (or an Argon case) it should then "just work" like a normal RPi4 install.