A:
I apologize if this doesn't help or is an overly simple suggestion....but it almost sounds like it could be something as simple as a wire issue. I don't know exactly how you have everything set up... I am assuming you have the component in for the cable and the optical in for the bluray on the module.
What worked for me is to input all the HDMI and component wires (from cable box, xbox one, wiiU, apple TV, and Chromecast) to the TV and then send the optical out from the TV to the little module. I have a Samsung plasma TV albeit slightly older.
I am no expert but it should be impossible to have compatibility issues... all it gets is the digital sound signal from an input, no HDMI "handshakes" or whatever.