Okay, so that is why it is switching to the stereo zone; because the output is in stereo!
The output is stereo because Zone Switch is incorrectly sending it to the wrong Zone.
The Stereo Video Zone mixes everything to 2 channels, the Multichannel Zone mixes everything to 6 channels.
I see that the audio is being up sampled to 192kHz first, which is a bit strange for a 7.1 channel audio stream, I would have thought.
The Stereo Video Zone resamples everything to 192kHz to ensure that audio latency has a fixed value.
If I send my DAC 192kHz for some files, and say 48kHz for others the difference when using large audio buffers can be something like 100ms, which would be noticeably out of sync.
The Multichannel Zone resamples everything to 96kHz for similar reasons (96kHz being the maximum rate supported by that device) and the Stereo
Music Zone does not resample anything below 192kHz.
What happens if you put the original dtsdecoderdll.dll back in the path?
It is still being routed to the Stereo Video Zone and not the Multichannel Zone.
I have attached a log, though I don't know that there is anything useful in it.