Passthrough via S/PDIF without pulse

[IriDium]

I've just setup a fresh image for RPi2 and hifiberry-dac (clone)

In /boot/config.txt
#dtparam=audio=on
dtoverlay=hifiberry-digi
(This line may not be needed but without it - KODI hung when selecting the S/PDIF option)
dtoverlay=lirc-rpi,gpio_out_pin=17,gpio_in_pin=22,debug

and
(Not too sure if this is needed, but)
/etc/modules.xbian
#snd_bcm2835

It worked perfectly on first plug in. Once I set the output everything was fine. Nothing else was changed or installed - Basically worked out of the box.

I tried DTS-MA, AC3 and various other 5.1 formats without any issue.

My setup is: HDMI to TV, S/PDIF to Yahama AV using AppTV Skin

Maybe you need to restart from scratch and start from there. Confluence skin, no add-ons or other modifications apart from thise listed above and see what you get.