PC audio cards to Processor


Hello, my question is probably out of the scope of this forum but I will ask any way.
I have decent audio system Mcintosh amps, processor Magico speakers etc.  The system is used for three purposes, home theater movies, stereo music and surround sound PC video games.  I connect the PC audio card to the processor via optical out from the audio card.  In order to get 5.1 surrond I have to set the audio card to 2 channel output even though it is a 5.1/7.1 Dolby DTS card.  If the audio cards software is  set to 5.1 etc. the result is stereo where only two channels received by the processor and converted to stereo on the system.  My question is this, does the processor convert the non Dolby non DTS two channel signal into dolby 5.1 surround.  In other words if I am using a quality PC audio card that is not Dolby and or DTS cabable and is two channel only (made for headphones) does the Dolby DTS enabled processor in this case a Mcintosh convert that two channel signal into the 5.1 surround signal?  

One other question:
Can anyone recommend the best internal PC audio card for 5.1  home theater use?  When PC audio cards are reviewed its almost always for use with headphones and not for componet (processor multiple amps mulitiple subs) driven home theater systems.

Thank you.
Guy
guyt
The gpu 1080Ti is in SLI I have two graphics cards with an HDMI out on each card.  one is already dedicated to the TV.     So the video game sound signal goes to the graphics card in addition to the video signal or are the combined? Would you explain in detail how to adjust setting in control panel to send audio out the unoccupied HDMI in detail?
Thanks
Assuming Windows 10:

In the search bar:
Search for : Control Panel
Click on: "Hardware and Sound"
Underneath Sound on the right click on: Manage Audio Devices.

You may even be able to change your digital output there. :)

Best,
E

If you want to try to usue 5.1 from a digital output, once you are there, select "Playback" tab, and then select your digital output, then "Properties" and finally, "Supported Formats"
I also want to point out, you may wish to go this way:

Nvidia --> McIntosh --> TV

as this will let the Mc decode your audio directly. The other way:

Nvidia --> TV --> (via ARC) --> McIntosh


may work, but you have to use the right ARC port, and it’s iffy. If you already have it working though, you should be all set.