The Apple Music subscription service has had lossless for 4 years, since June of 2021, so I think maybe there are some folks here sharing experiences that go back until before then. Which sort of proves the argument that people remember negative experiences like they happened yesterday.
It’s also worth noting that the bit depth and sample rate are limited on an album by album basis to what the content provider offers. Apple can’t force a record label to upload 24-bit/192 KHz files to the server cluster, but some have! This is easier to see if you’re playing tracks in the Music app on a Mac where clicking Lossless or High-Resolution Lossless will tell you the actual stream characteristics.
It is true that an Apple TV 4K streaming box has a 48 KHz sample rate limit on it, probably imposed by the choice of HDMI controller chip but I have no idea there. This means that audio above the 48 KHz sampling rate will be downsampled, although it is not clear whether the Music app tells the server it’s running on an Apple TV and the server sends a 48 KHz master of the song or if the Apple TV 4K downsamples it on the fly. Apple hates to waste things like energy and bandwidth and I wouldn’t be surprised if they do the former instead of the latter. When you have hundreds of millions of customers those wasted bits add up!
One thing to note is that in the TV app on Mac computers Apple has added a setting for HDMI Passthrough for Dolby Digital and Dolby Atmos content that bypasses all processing in the Mac.
If you want a feature like this for Apple Music, and you want it for all content not just Dolby encided content, the best way to get Apple to listen to you is to go to https://apple.com/feedback and clearly articulate your desires there. Apple reads all that feedback and they have taken action on it in the past!